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Housing Price Gradients in a Region with One Dominating Center

Author

Listed:
  • Liv Osland

    () (Stord/Haugesund University College,Bjørnsonsgt. 45, 5528 Haugesund, Norway)

  • Inge Thorsen

    (Stord/Haugesund University College, Bjørnsonsgt. 45, 5528 Haugesund, Norway)

  • Jens Petter Gitlesen

    (University of Stavanger, 4036 Stavanger, Norway)

Abstract

This paper primarily focuses on predicting housing price gradients in a Norwegian region with one dominating center. Spatial separation is represented by a function of the traveling distance from the city center in a traditional hedonic regression equation. Several functions are tested, and some alternatives provide a satisfying goodness-of-fit, consistent coefficient estimates, and intuitively reasonable predictions of housing price gradients. Still, not all commonly used functions are recommended. The findings also indicate that the strength of spatial autocorrelation is reduced when the hedonic function is properly specified.

Suggested Citation

  • Liv Osland & Inge Thorsen & Jens Petter Gitlesen, 2007. "Housing Price Gradients in a Region with One Dominating Center," Journal of Real Estate Research, American Real Estate Society, vol. 29(3), pages 321-346.
  • Handle: RePEc:jre:issued:v:29:n:3:2007:p:321-346
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    References listed on IDEAS

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    5. Florax, Raymond J. G. M. & Voortman, Roelf L. & Brouwer, Joost, 2002. "Spatial dimensions of precision agriculture: a spatial econometric analysis of millet yield on Sahelian coversands," Agricultural Economics, Blackwell, vol. 27(3), pages 425-443, November.
    6. Timothy J. Bartik & V. Kerry Smith, 1996. "Urban Amenities and Public Policy," Book chapters authored by Upjohn Institute researchers,in: V. Kerry Smith (ed.), Estimating Economic Values for Nature: Methods for Non-Market Valuation, pages 271-318 W.E. Upjohn Institute for Employment Research.
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    10. Won Kim, Chong & Phipps, Tim T. & Anselin, Luc, 2003. "Measuring the benefits of air quality improvement: a spatial hedonic approach," Journal of Environmental Economics and Management, Elsevier, vol. 45(1), pages 24-39, January.
    11. Waddell, Paul & Berry, Brian J L & Hoch, Irving, 1993. "Residential Property Values in a Multinodal Urban Area: New Evidence on the Implicit Price of Location," The Journal of Real Estate Finance and Economics, Springer, vol. 7(2), pages 117-141, September.
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    Cited by:

    1. Gianmarco I.P. Ottaviano & Giovanni Peri, 2012. "The effects of immigration on US wages and rents: a general equilibrium approach," Chapters,in: Migration Impact Assessment, chapter 3, pages 107-146 Edward Elgar Publishing.
    2. Yunlong Gong & Peter Boelhouwer & Jan de Haan, 2016. "Interurban house price gradient: Effect of urban hierarchy distance on house prices," Urban Studies, Urban Studies Journal Limited, vol. 53(15), pages 3317-3335, November.
    3. repec:bla:revurb:v:29:y:2017:i:2:p:89-102 is not listed on IDEAS

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