IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v28y1991i5p773-781.html
   My bibliography  Save this article

Hedonic Indices and Housing Programme Benefits

Author

Listed:
  • Isaac F. Megbolugbe

    (Department of Finance and Real Estate at the Kogod College of Business Administration, American University, Washington, DC, USA)

Abstract

The availability of reliable measures of housing programme benefits is important for decisions that planners make about appropriate housing policies. This paper advocates the use of hedonic price estimation techniques for the direct measurement of housing programme benefits in developing countries without restrictive characterisations of housing demand. A market-weighted economic welfare index is used to measure the housing benefits. The benefits are the difference between estimated hedonic price equations before and after the implementation of a programme summed across all households and then multiplied by the cash equivalent of a unit of hedonic value. The cash value of a unit of hedonic value is determined by dividing the observed aggregate market value of houses in an analysis sample by the estimated aggregate hedonic value for that sample. Measuring housing programme benefits from direct market valuation of programme-induced changes in housing attributes does not imply that such programmes are necessarily efficient means of delivering services to residents. Nevertheless, the hedonic approach enables policy-makers to consider the opportunity cost for participants through robust analysis.

Suggested Citation

  • Isaac F. Megbolugbe, 1991. "Hedonic Indices and Housing Programme Benefits," Urban Studies, Urban Studies Journal Limited, vol. 28(5), pages 773-781, October.
    • Handle: RePEc:sae:urbstu:v:28:y:1991:i:5:p:773-781
    DOI: 10.1080/00420989120080921
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/00420989120080921
    Download Restriction: no
    File URL: https://libkey.io/10.1080/00420989120080921?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Olsen, Edgar O. & Barton, David M., 1983. "The benefits and costs of public housing in New York City," Journal of Public Economics, Elsevier, vol. 20(3), pages 299-332, April.
    2. Murray, Michael P., 1980. "A reinterpretation of the traditional income-leisure model, with application to in-kind subsidy programs," Journal of Public Economics, Elsevier, vol. 14(1), pages 69-81, August.
    3. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    4. Follain, James R. & Jimenez, Emmanuel, 1985. "Estimating the demand for housing characteristics: A survey and critique," Regional Science and Urban Economics, Elsevier, vol. 15(1), pages 77-107, February.
    5. Linneman, Peter, 1980. "Some empirical results on the nature of the hedonic price function for the urban housing market," Journal of Urban Economics, Elsevier, vol. 8(1), pages 47-68, July.
    6. Quigley, John M., 1982. "Nonlinear budget constraints and consumer demand: An application to public programs for residential housing," Journal of Urban Economics, Elsevier, vol. 12(2), pages 177-201, September.
    7. Gyourko, Joseph & Linneman, Peter, 1990. "Measurement problems in quantifying the distributional effects of subsidy programs," Journal of Urban Economics, Elsevier, vol. 28(1), pages 19-33, July.
    8. Linneman, Peter, 1981. "The demand for residence site characteristics," Journal of Urban Economics, Elsevier, vol. 9(2), pages 129-148, March.
    9. Murray, Michael P, 1975. "The Distribution of Tenant Benefits in Public Housing," Econometrica, Econometric Society, vol. 43(4), pages 771-788, July.
    10. Halvorsen, Robert & Pollakowski, Henry O., 1981. "Choice of functional form for hedonic price equations," Journal of Urban Economics, Elsevier, vol. 10(1), pages 37-49, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Isaac F. Megbolugbe, 1989. "A Hedonic Index Model: The Housing Market of Jos, Nigeria," Urban Studies, Urban Studies Journal Limited, vol. 26(5), pages 486-494, October.
    2. Brian A. Cromwell, 1990. "Prointegrative subsidies and their effect on housing markets: do race- based loans work?," Working Papers (Old Series) 9018, Federal Reserve Bank of Cleveland.
    3. Celia Bilbao-Terol, 2009. "Impacts of an Iron and Steel Plant on Residential Property Values," European Planning Studies, Taylor & Francis Journals, vol. 17(9), pages 1421-1436, September.
    4. Wilhelmsson, Mats, 2002. "Household Expenditure Patterns for Housing Attributes: A Linear Expenditure System with Hedonic Prices," Journal of Housing Economics, Elsevier, vol. 11(1), pages 75-93, March.
    5. In Joon Kim & Geun Yong Kim & Juhyun Yoon, 2004. "Estimation of the Tenants' Benefits Residing in Public Rental Housing with Unit Size Constraint in Korea," Urban Studies, Urban Studies Journal Limited, vol. 41(8), pages 1521-1536, July.
    6. Ben C. Arimah, 1992. "Hedonic Prices and the Demand for Housing Attributes in a Third World City: The Case of Ibadan, Nigeria," Urban Studies, Urban Studies Journal Limited, vol. 29(5), pages 639-651, June.
    7. Randall Crane & Amrita Daniere & Stacy Harwood, 1997. "The Contribution of Environmental Amenities to Low-income Housing: A Comparative Study of Bangkok and Jakarta," Urban Studies, Urban Studies Journal Limited, vol. 34(9), pages 1495-1512, August.
    8. James R. Follain & Emmanuel Jimenez, 1985. "The Demand for Housing Characteristics in Developing Countries," Urban Studies, Urban Studies Journal Limited, vol. 22(5), pages 421-432, October.
    9. Theodore M. Crone, 2006. "Capitalization of the quality of local public schools: what do home buyers value?," Working Papers 06-15, Federal Reserve Bank of Philadelphia.
    10. Uchenna N. Akpom, 1996. "Housing Attributes And The Cost Of Private Rental Buildings In Lagos Nigeria: A Hedonic Price Analysis," The Review of Regional Studies, Southern Regional Science Association, vol. 26(3), pages 351-365, Winter.
    11. Sudip Chattopadhyay, 2003. "A Repeated Sampling Technique in Assessing the Validity of Benefit Transfer in Valuing Non-Market Goods," Land Economics, University of Wisconsin Press, vol. 79(4), pages 576-596.
    12. Tao Zhou & Rui Zhao & Yulin Zhou, 2017. "Factors Influencing Land Development and Redevelopment during China’s Rapid Urbanization: Evidence from Haikou City, 2003–2016," Sustainability, MDPI, vol. 9(11), pages 1-17, November.
    13. Kanemoto, Yoshitsugu, 1988. "Hedonic Prices and the Benefits of Public Projects," Econometrica, Econometric Society, vol. 56(4), pages 981-989, July.
    14. Paul K. Asabere & Forrest E. Huffman, 1992. "Price Determinants of Foreclosed Urban Land," Urban Studies, Urban Studies Journal Limited, vol. 29(5), pages 701-707, June.
    15. Gatzlaff, Dean H. & Haurin, Donald R., 1998. "Sample Selection and Biases in Local House Value Indices," Journal of Urban Economics, Elsevier, vol. 43(2), pages 199-222, March.
    16. Nisha Agrawal, 1988. "The Economic Effects of Public Housing in Australia," The Economic Record, The Economic Society of Australia, vol. 64(4), pages 254-267, December.
    17. Philippe Thalmann, 1999. "Identifying Households which Need Housing Assistance," Urban Studies, Urban Studies Journal Limited, vol. 36(11), pages 1933-1947, October.
    18. Andres Jauregui & Diane Hite, 2010. "The impact of real estate agents on house prices near environmental disamenities," Housing Policy Debate, Taylor & Francis Journals, vol. 20(2), pages 295-316, March.
    19. John Yinger, 2009. "Hedonic Markets and Explicit Demands: Bid-Function Envelopes for Public Services, Neighborhood Amenities, and Commuting Costs," Center for Policy Research Working Papers 114, Center for Policy Research, Maxwell School, Syracuse University.
    20. Saudamini Das & Arup Mitra & Rajnish Kumar, 2017. "Do neighbourhood facilities matter for slum housing? Evidence from Indian slum clusters," Urban Studies, Urban Studies Journal Limited, vol. 54(8), pages 1887-1904, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:28:y:1991:i:5:p:773-781. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.