IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v61y1985i4p737-743.html
   My bibliography  Save this article

Hedonic Analysis in a Spatial Context: Theoretical Problems in Valuing Location‐Specific Amenities

Author

Listed:
  • PHILIP E. GRAVES
  • THOMAS A. KNAPP

Abstract

Hedonic analysis is frequently implemented to generate implicit prices for location‐specific amenities within single markets, either in cross‐city wage differentials or in intra‐city rent gradients. Amenities are shown to be generally priced in both land and labour markets, with single‐market valuations tending to understate true amenity values. Establishing a correct multi‐market amenity valuation model is seen to depend on the resolution of a host of additional issues.

Suggested Citation

  • Philip E. Graves & Thomas A. Knapp, 1985. "Hedonic Analysis in a Spatial Context: Theoretical Problems in Valuing Location‐Specific Amenities," The Economic Record, The Economic Society of Australia, vol. 61(4), pages 737-743, December.
    • Handle: RePEc:bla:ecorec:v:61:y:1985:i:4:p:737-743
    DOI: 10.1111/j.1475-4932.1985.tb02029.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1985.tb02029.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.1985.tb02029.x?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bartel, Ann P, 1979. "The Migration Decision: What Role Does Job Mobility Play?," American Economic Review, American Economic Association, vol. 69(5), pages 775-786, December.
    2. Henderson, J. Vernon, 1982. "Evaluating consumer amenities and interregional welfare differences," Journal of Urban Economics, Elsevier, vol. 11(1), pages 32-59, January.
    3. Bayless, Mark, 1982. "Measuring the benefits of air quality improvements: A hedonic salary approach," Journal of Environmental Economics and Management, Elsevier, vol. 9(1), pages 81-99, March.
    4. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    5. Linneman, Peter & Graves, Philip E., 1983. "Migration and job change: A multinomial logit approach," Journal of Urban Economics, Elsevier, vol. 14(3), pages 263-279, November.
    6. Graves, Philip E., 1979. "A life-cycle empirical analysis of migration and climate, by race," Journal of Urban Economics, Elsevier, vol. 6(2), pages 135-147, April.
    7. Straszheim, Mahlon R., 1984. "Urban agglomeration effects and employment and wage gradients," Journal of Urban Economics, Elsevier, vol. 16(2), pages 187-207, September.
    8. Graves, Philip E., 1983. "Migration with a composite amenity: the role of rents," MPRA Paper 19917, University Library of Munich, Germany.
    9. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    10. 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..
    11. Smith, V. Kerry, 1983. "The role of site and job characteristics in hedonic wage models," Journal of Urban Economics, Elsevier, vol. 13(3), pages 296-321, May.
    12. Graves, Philip E. & Linneman, Peter D., 1979. "Household migration: Theoretical and empirical results," Journal of Urban Economics, Elsevier, vol. 6(3), pages 383-404, July.
    13. Cropper, M. L. & Arriaga-Salinas, A. S., 1980. "Inter-city wage differentials and the value of air quality," Journal of Urban Economics, Elsevier, vol. 8(2), pages 236-254, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Waltert, Fabian & Schläpfer, Felix, 2010. "Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies," Ecological Economics, Elsevier, vol. 70(2), pages 141-152, December.
    2. Hubert Jayet, 1996. "L'analyse économique des migrations, une synthèse critique," Revue Économique, Programme National Persée, vol. 47(2), pages 193-226.
    3. Fabian Waltert & Felix Schlaepfer, 2007. "The role of landscape amenities in regional development: a survey of migration, regional economic and hedonic pricing studies," SOI - Working Papers 0710, Socioeconomic Institute - University of Zurich.
    4. Julia Koschinsky & Nancy Lozano-Gracia & Gianfranco Piras, 2012. "The welfare benefit of a home’s location: an empirical comparison of spatial and non-spatial model estimates," Journal of Geographical Systems, Springer, vol. 14(3), pages 319-356, July.

    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. Clark David E. & Nieves Leslie A., 1994. "An Interregional Hedonic Analysis of Noxious Facility Impacts on Local Wages and Property Values," Journal of Environmental Economics and Management, Elsevier, vol. 27(3), pages 235-253, November.
    2. Hubert Jayet, 1996. "L'analyse économique des migrations, une synthèse critique," Revue Économique, Programme National Persée, vol. 47(2), pages 193-226.
    3. David E. Clark, 2004. "Amenity Valuation, Incomplete Compensation and Migration," Working Papers and Research 0402, Marquette University, Center for Global and Economic Studies and Department of Economics.
    4. Maddison, David, 2003. "The amenity value of the climate: the household production function approach," Resource and Energy Economics, Elsevier, vol. 25(2), pages 155-175, May.
    5. Douglas J. Krupka, 2009. "Location‐Specific Human Capital, Location Choice And Amenity Demand," Journal of Regional Science, Wiley Blackwell, vol. 49(5), pages 833-854, December.
    6. Guangqing Chi & David Marcouiller, 2011. "Isolating the Effect of Natural Amenities on Population Change at the Local Level," Regional Studies, Taylor & Francis Journals, vol. 45(4), pages 491-505.
    7. Guangqing Chi & David Marcouiller, 2013. "Natural amenities and their effects on migration along the urban–rural continuum," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(3), pages 861-883, June.
    8. Cragg, Michael & Kahn, Matthew, 1997. "New Estimates of Climate Demand: Evidence from Location Choice," Journal of Urban Economics, Elsevier, vol. 42(2), pages 261-284, September.
    9. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    10. Deller, Steven C. & Ottem, Thomas D., 2001. "Crime And The Quality Of Life In Wisconsin Counties," Staff Papers 12652, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    11. Paul Cheshire & Stefano Magrini, 2008. "Urban Growth Drivers and Spatial Inequalities: Europe - a case with geographically sticky people," Working Papers 2008_32, Department of Economics, University of Venice "Ca' Foscari".
    12. David E. Clark & Thomas A. Knapp, 1995. "The Hedonic Price Structure Of Faculty Compensation At U.S. Colleges And Universities," The Review of Regional Studies, Southern Regional Science Association, vol. 25(2), pages 117-141, Fall.
    13. Shelby Gerking, 1998. "Spatial economic aspects of the environment and environmental policy: New directions for research," ERSA conference papers ersa98p384, European Regional Science Association.
    14. Colwell, Peter F. & Dehring, Carolyn A. & Turnbull, Geoffrey K., 2002. "Recreation Demand and Residential Location," Journal of Urban Economics, Elsevier, vol. 51(3), pages 418-428, May.
    15. Clark, David E. & Herrin, William E. & Knapp, Thomas A. & White, Nancy E., 2006. "Incomplete Compensation and Migration Behavior: Has Anything Changed Between 1990 and 2000?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(2), pages 1-13.
    16. Michael Greenstone & Enrico Moretti, 2003. "Bidding for Industrial Plants: Does Winning a 'Million Dollar Plant' Increase Welfare?," NBER Working Papers 9844, National Bureau of Economic Research, Inc.
    17. Charlotta Mellander & Richard Florida & Kevin Stolarick, 2011. "Here to Stay—The Effects of Community Satisfaction on the Decision to Stay," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(1), pages 5-24.
    18. Douglas J. Krupka & Kwame N. Donaldson, 2013. "Wages, Rents, And Heterogeneous Moving Costs," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 844-864, January.
    19. Hand, Michael S. & Thacher, Jennifer A. & McCollum, Daniel W. & Berrens, Robert P., 2008. "Forest Amenities and Location Choice in the Southwest," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(2), pages 1-22.
    20. Ferrara, Antonella Rita & Dijkstra, Lewis & McCann, Philip & Nisticó, Rosanna, 2022. "The response of regional well-being to place-based policy interventions," Regional Science and Urban Economics, Elsevier, vol. 97(C).

    More about this item

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D1 - Microeconomics - - Household Behavior

    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:bla:ecorec:v:61:y:1985:i:4:p:737-743. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    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.