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Modelling Spatial Structures in Local Housing Market Dynamics: A Multilevel Perspective

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  • Scott Orford

    (Department of City and Regional Planning, Cardiff University, Glamorgan Building, King Edward VAvenue, Cardiff, CF10 3WA, UK, orfords@cardiff.ac.uk)

Abstract

There has been a long history of research into the development and estimation of hedonic house price models. There is, however, a discrepancy between the empirical and theoretical approaches to this research. A major issue lies in the integration of the conceptual and theoretical models of local housing markets with the context-insensitive nature of the standard hedonic model specification. This paper explores this inconsistency by using multilevel modelling to move towards a more empirically and conceptually appealing specification of the hedonic house price model. It uses price data from Cardiff to investigate how a multilevel approach can explicitly incorporate the spatial structures of housing market dynamics and the ad hoc nature of the valuation process. The paper concludes that successful empirical analysis depends upon a clear theoretical understanding of the processes under investigation.

Suggested Citation

  • Scott Orford, 2000. "Modelling Spatial Structures in Local Housing Market Dynamics: A Multilevel Perspective," Urban Studies, Urban Studies Journal Limited, vol. 37(9), pages 1643-1671, August.
    • Handle: RePEc:sae:urbstu:v:37:y:2000:i:9:p:1643-1671
    DOI: 10.1080/00420980020080301
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    References listed on IDEAS

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    Cited by:

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    6. Fernando BRUNA & Isabel NEIRA & Marta PORTELA, 2019. "Horizontal And Vertical Contexts On Europeans’ Well-Being," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 19(2), pages 37-56.
    7. Nadia Fiorino & Nicola Pontarollo & Roberto Ricciuti, 2016. "Voter Turnout in European Parliament Elections: A Spatial Analysis," CESifo Working Paper Series 5910, CESifo.
    8. Johanna Choumert & N. Eric Kéré & Amandine Loyal Laré-Dondarini, 2016. "A Multi-Level Housing Hedonic Analysis of Water and Sanitation Access," Economics Bulletin, AccessEcon, vol. 36(2), pages 1010-1037.
    9. Chasco, Coro & Le Gallo, Julie & López, Fernando A., 2018. "A scan test for spatial groupwise heteroscedasticity in cross-sectional models with an application on houses prices in Madrid," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 226-238.
    10. Mark Skidmore & Gary Anderson & Mark Eiswerth, 2011. "The Child Adoption Marketplace: Parental Preferences and Adoption Outcomes," CESifo Working Paper Series 3674, CESifo.
    11. Yonghua Zou, 2015. "Re-examining the Neighborhood Distribution of Higher Priced Mortgage Lending: Global versus Local Methods," Growth and Change, Wiley Blackwell, vol. 46(4), pages 654-674, December.

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