Bayesian Model Averaging in the Context of Spatial Hedonic Pricing: An Application to Farmland Values
AbstractSince 1973, British Columbia created an Agricultural Land Reserve to protect farmland from development. In this study, we employ GIS-based hedonic pricing models of farmland values to examine factors that affect farmland prices. We take spatial lag and error dependence into explicit account. However, the use of spatial econometric techniques in hedonic pricing models is problematic because there is uncertainty with respect to the choice of the explanatory variables and the spatial weighting matrix. Bayesian model averaging techniques in combination with Markov Chain Monte Carlo Model Composition are used to allow for both types of model uncertainty.
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Bibliographic InfoPaper provided by University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group in its series Working Papers with number 2007-07.
Length: 30 pages
Date of creation: Nov 2007
Date of revision:
Bayesian model averaging; Markov Chain Monte Carlo Model Composition; spatial econometrics; hedonic pricing; GIS; urban-rural fringe; farmland fragmentation;
Other versions of this item:
- Geerte Cotteleer & Tracy Stobbe & G. Cornelis van Kooten, 2011. "Bayesian Model Averaging In The Context Of Spatial Hedonic Pricing: An Application To Farmland Values," Journal of Regional Science, Wiley Blackwell, vol. 51(3), pages 540-557, 08.
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
- C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
- R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
This paper has been announced in the following NEP Reports:
- NEP-AGR-2008-01-05 (Agricultural Economics)
- NEP-ALL-2008-01-05 (All new papers)
- NEP-ECM-2008-01-05 (Econometrics)
- NEP-GEO-2008-01-05 (Economic Geography)
- NEP-URE-2008-01-05 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Geerte Cotteleer & Tracy Stobbe & G. Cornelis van Kooten, 2008. "Expert Opinion versus Transaction Evidence: Using the Reilly Index to Measure Open Space premiums in the Urban-Rural Fringe," Working Papers 2008-06, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
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