An Application of Spatial Econometrics in Relation to Hedonic House Price Modelling
AbstractThis paper applies spatial econometrics in relation to hedonic house price modelling. We present and use some basic acknowledged spatial model alternatives and a battery of relevant tests. Geographically weighted regression, semiparametric analysis, and the mixed spatial Durbin model are also applied. The purpose is to detect missing spatial variables, misspecified functional form and spatial heterogeneity in estimated parameters. Such misspecifications have been shown to give spurious results in relation to some frequently used directional based tests. We achieve significant model improvement, so the paper should be of general interest as an example of practical econometric modelling within the field.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by American Real Estate Society in its journal journal of Real Estate Research.
Volume (Year): 32 (2010)
Issue (Month): 3 ()
Contact details of provider:
Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
Web page: http://www.aresnet.org/
Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
Find related papers by JEL classification:
- L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Román Mínguez & José-María Montero & Gema Fernández-Avilés, 2013. "Measuring the impact of pollution on property prices in Madrid: objective versus subjective pollution indicators in spatial models," Journal of Geographical Systems, Springer, vol. 15(2), pages 169-191, April.
- Arnstein Gjestland & David McArthur & Liv Osland & Inge Thorsen, 2011. "Relationships between housing prices and commuting flows," ERSA conference papers ersa10p906, European Regional Science Association.
- 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.
- Dennis Sánchez-Navarro, 2012. "Una propuesta metodológica para la definición de mercados geográficos relevantes," ESTUDIOS ECONÃMICOS SIC 010492, SUPERINTENDENCIA DE INDUSTRIA Y COMERCIO.
- Hansen, Winslow D. & Naughton, Helen T., 2013. "The effects of a spruce bark beetle outbreak and wildfires on property values in the wildland–urban interface of south-central Alaska, USA," Ecological Economics, Elsevier, vol. 96(C), pages 141-154.
- López-Hernández , Fernando A. & Artal-Tur, Andrés & Maté-Sánchez-Val, M. Luz, 2011. "Identifying nonlinear spatial dependence patterns by using non-parametric tests: Evidence for the European Union," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 21, pages 19-36.
- Özyurt, Selin, 2014. "Spatial dependence in commercial property prices: micro evidence from the Netherlands," Working Paper Series 1627, European Central Bank.
- Gjestland, Arnstein & McArthur, David Philip & Osland, Liv & Thorsen, Inge, 2014. "The suitability of hedonic models for cost-benefit analysis: Evidence from commuting flows," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 136-151.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (JRER Graduate Assistant/Webmaster).
If references are entirely missing, you can add them using this form.