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

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  • 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
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    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.

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    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

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