Hierarchy and spatial autocorrelation effects in hedonic models
AbstractHedonic housing price models should deal with spatial autocorrelation in order to avoid bias and inconsistency in the coefficient estimates. Multilevel models have been presented as a way of properly considering the effects of neighbourhood amenities operating at different spatial hierarchies. In this paper, we test this feature by specifying a three-level model for a dataset on downtown Madrid, which includes spatially lagged explanatory variables. The results show that hierarchical models are not capable of fully capturing spatial autocorrelation so that more effort should be done in developing the appropriate spatial multilevel models.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 32 (2012)
Issue (Month): 2 ()
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hedonic models; hierarchical data; multilevel models; spatial autocorrelation;
Find related papers by JEL classification:
- R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
- C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
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- G�ran Therborn & K.C. Ho, 2009. "Introduction," City, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(1), pages 53-62, March.
- Dennis Sánchez-Navarro, 2012.
"Una propuesta metodológica para la definición de mercados geográficos relevantes,"
ESTUDIOS ECONÃMICOS SIC, SUPERINTENDENCIA DE INDUSTRIA Y COMERCIO
010492, SUPERINTENDENCIA DE INDUSTRIA Y COMERCIO.
- Sánchez Navarro, Dennis, 2012.
"Una propuesta metodológica para la definición de mercados geográficos relevantes
[A proposed methodology for defining relevant geographic markets]," MPRA Paper 44498, University Library of Munich, Germany.
- Sánchez Navarro, Dennis, 2012. "Una propuesta metodológica para la definición de mercados geográficos relevantes
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