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Hedonic house prices and spatial quantile regression

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  • Liao, Wen-Chi
  • Wang, Xizhu

Abstract

Despite its long history, hedonic pricing for housing valuation remains an active research area, and applications of new estimation methods continually push research frontiers. However, housing studies regarding Chinese cities are limited because of the short history of China’s free housing market. Such studies may, nonetheless, provide new insights given the nation’s current transitional stage of economic development. Therefore, this research makes use of publicly accessible sources to construct a new micro-dataset for an emerging Chinese city, Changsha, and it incorporates quantile regression with spatial econometric modeling to examine how implicit prices of housing characteristics may vary across the conditional distribution of house prices. Substantial variations are found, and the intuitions and implications are discussed. Additionally, the spatial dependence exhibits a U-shape pattern. The dependence is strong in the upper and lower parts of the response distribution, but it is little in the medium range.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Housing Economics.

Volume (Year): 21 (2012)
Issue (Month): 1 ()
Pages: 16-27

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Handle: RePEc:eee:jhouse:v:21:y:2012:i:1:p:16-27

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Web page: http://www.elsevier.com/locate/inca/622881

Related research

Keywords: Hedonic pricing model; Quantile regression; Spatial autocorrelation; Spatial model; China housing market;

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References

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Cited by:
  1. Hernán Enríquez Sierra & Carlos Barreto Nieto & Carolina Correa Caro & Jacobo Campo Robledo, 2012. "PRECIO DEL SUELO Y REGALÍAS EN COLOMBIA: Un análisis espacial para los municipios productores de petróleo," DOCUMENTOS DE TRABAJO 010252, UNIVERSIDAD CATOLICA DE COLOMBIA.
  2. Fuchs, Benjamin & Fitzenberger, Bernd, 2013. "Tenancy Law Reform Act and Length of Tenancy Discount: Heterogenous Effects in a West German Household Sample," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79723, Verein für Socialpolitik / German Economic Association.
  3. repec:asi:ajoerj:2013:p:785-807 is not listed on IDEAS
  4. Gerdesmeier, Dieter & Lenarčič, Andreja & Roffia, Barbara, 2012. "An alternative method for identifying booms and busts in the euro area housing market," Working Paper Series 1493, European Central Bank.

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