Hedonic regressions: mis-specification and neural networks
AbstractThere is an emerging literature in the field of hedonic regressions which successfully applies flexible functional forms. In contrast, numerous authors report hedonic regressions with relatively simple functions, often with little or no attempt to consider interaction terms and higher level powers. Such simple functions perform relatively well in spite of good a priori grounds for quite complex interaction effects. Indeed, the studies are characterised by a general indifference to testing these more flexible models, even when degrees of freedom permit. Using detailed scanner data, hedonic functions for the UK TV market are estimated and tested for interaction effects. For a case study of the market, higher level interaction effects are tested for and compare the results with those from a neural network, with its property of 'universal approximation'. The use of neural networks is particularly novel in this context and some general findings on their suitability emerge.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 33 (2001)
Issue (Month): 5 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Beer, Michael, 2005.
"Bootstrapping a Hedonic Price Index: Experience from Used Cars Data,"
DQE Working Papers
4, Department of Quantitative Economics, University of Freiburg/Fribourg Switzerland, revised 20 Jan 2007.
- Michael Beer, 2007. "Bootstrapping a hedonic price index: experience from used cars data," AStA Advances in Statistical Analysis, Springer, vol. 91(1), pages 77-92, March.
- Hoffmann, Johannes & Kurz, Claudia, 2002.
"Rent indices for housing in West Germany 1985 to 1998,"
Discussion Paper Series 1: Economic Studies
2002,01, Deutsche Bundesbank, Research Centre.
- Hoffmann, Johannes & Kurz, Claudia, 2002. "Rent indices for housing in West Germany 1985 to 1998," Working Paper Series 0116, European Central Bank.
- Brachinger, Hans Wolfgang & Beer, Michael, 2009. "The Econometric Foundations of Hedonic Elementary Price Indices," DQE Working Papers 12, Department of Quantitative Economics, University of Freiburg/Fribourg Switzerland.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.