Hierarchy and spatial autocorrelation effects in hedonic models
Hedonic housing price models should deal with spatial autocorrelation in order to avoid bias and inconsistency in the coefficient estimates. Multilevel models have been presented as a way of properly considering the effects of neighbourhood amenities operating at different spatial hierarchies. In this paper, we test this feature by specifying a three-level model for a dataset on downtown Madrid, which includes spatially lagged explanatory variables. The results show that hierarchical models are not capable of fully capturing spatial autocorrelation so that more effort should be done in developing the appropriate spatial multilevel models.
Volume (Year): 32 (2012)
Issue (Month): 2 ()
|Contact details of provider:|| |
References listed on IDEAS
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.:
- J. Barkley Rosser, 2009. "Introduction," Chapters, in: Handbook of Research on Complexity, chapter 1 Edward Elgar.
- G�ran Therborn & K.C. Ho, 2009. "Introduction," City, Taylor & Francis Journals, vol. 13(1), pages 53-62, March.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-11-00777. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
If references are entirely missing, you can add them using this form.