IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Spatial issues on a hedonic estimation of rents in Brussels

  • PHOLO BALA, Alain


    (Department of Economics and Econometrics, University of Johannesburg, South Africa)

  • PEETERS, Dominique


    (Université catholique de Louvain, CORE, Belgium)

  • THOMAS, Isabelle


    (Université catholique de Louvain, CORE, Belgium)

Using Belgian microdata, we assess the impact, on a hedonic regression, of the distortions arising from the choice of either a specific zoning system or the delineation of the study area. We also evaluate the biases that arise when spatial effects are not accounted for. Given that the dependent variable is interval-coded, controlling for spatial dependence in this context is challenging. We address this problem with two alternative strategies. Firstly, we use the Gibbs Sampling algorithm to estimate spatial econometric models which extends the interval regression model. A major drawback of this approach is that the implied estimation is proned to the endogeneity biases inherent to our hedonic regression model. To circumvent the endogeneity issues triggered by the first estimation strategy, we also use a two-stage estimation procedure with locational fixed effects. In all specifications, results are sensitive to the Modifiable Areal Unit Problem (MAUP) and to the choice of the delineation of the study area. Moreover, they confirm the existence of substantive spatial dependence. Conversely to the previous results with a negative elasticity for the percentage of the area covered by agriculture and a positive elasticity for the potential accessibility to jobs, the second approach implies opposite effects for those two variables. This indicates that dwellings close to agricultural areas and with a lower accessibility to the main employment centers are highly demanded and that endogeneity biases are not negligible.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2013036.

in new window

Date of creation: 23 Jul 2013
Date of revision:
Handle: RePEc:cor:louvco:2013036
Contact details of provider: Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)
Phone: 32(10)474321
Fax: +32 10474304
Web page:

More information through EDIRC

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.:

as in new window
  1. Löchl, Michael & Axhausen, Kay W., 2010. "Modelling hedonic residential rents for land use and transport simulation while considering spatial effects," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 3(2), pages 39-63.
  2. ., 2004. "F," Chapters, in: An Eponymous Dictionary of Economics, chapter 6 Edward Elgar.
  3. Florence Goffette-Nagot & Isabelle Reginster & Isabelle Thomas, 2011. "Spatial Analysis of Residential Land Prices in Belgium: Accessibility, Linguistic Border, and Environmental Amenities," Regional Studies, Taylor & Francis Journals, vol. 45(9), pages 1253-1268, February.
  4. David Brasington & D. Hite, . "Demand for Environmental Quality: A Spatial Hedonic Analysis," Departmental Working Papers 2003-02, Department of Economics, Louisiana State University.
  5. repec:cor:louvrp:-2079 is not listed on IDEAS
  6. ., 2004. "A," Chapters, in: An Eponymous Dictionary of Economics, chapter 1 Edward Elgar.
  7. Briant, A. & Combes, P.-P. & Lafourcade, M., 2010. "Dots to boxes: Do the size and shape of spatial units jeopardize economic geography estimations?," Journal of Urban Economics, Elsevier, vol. 67(3), pages 287-302, May.
  8. ., 2004. "L," Chapters, in: An Eponymous Dictionary of Economics, chapter 12 Edward Elgar.
  9. ., 2004. "S," Chapters, in: An Eponymous Dictionary of Economics, chapter 18 Edward Elgar.
  10. A S Fotheringham & D W S Wong, 1991. "The modifiable areal unit problem in multivariate statistical analysis," Environment and Planning A, Pion Ltd, London, vol. 23(7), pages 1025-1044, July.
  11. Head, Keith & Mayer, Thierry, 2002. "Market Potential and the Location of Japanese Investment in the European Union," CEPR Discussion Papers 3455, C.E.P.R. Discussion Papers.
  12. ., 2004. "O," Chapters, in: An Eponymous Dictionary of Economics, chapter 15 Edward Elgar.
  13. ., 2004. "D," Chapters, in: An Eponymous Dictionary of Economics, chapter 4 Edward Elgar.
  14. Montero, José María & Larraz, Beatriz & Chasco, Coro, 2008. "Building an Environmental Quality Index for a big city: a spatial interpolation approach with DP2," MPRA Paper 10736, University Library of Munich, Germany.
  15. Denis Bolduc & Bernard Fortin & Stephen Gordon, 1997. "Multinomial Probit Estimation of Spatially Interdependent Choices: An Empirical Comparison of Two New Techniques," International Regional Science Review, , vol. 20(1-2), pages 77-101, April.
  16. ., 2004. "T," Chapters, in: An Eponymous Dictionary of Economics, chapter 19 Edward Elgar.
  17. ., 2004. "I," Chapters, in: An Eponymous Dictionary of Economics, chapter 9 Edward Elgar.
  18. Hernán D. Rozenfeld & Diego Rybski & Xavier Gabaix & Hernán A. Makse, 2009. "The Area and Population of Cities: New Insights from a Different Perspective on Cities," NBER Working Papers 15409, National Bureau of Economic Research, Inc.
  19. ., 2004. "H," Chapters, in: An Eponymous Dictionary of Economics, chapter 8 Edward Elgar.
  20. Gawande, Kishore & Jenkins-Smith, Hank, 2001. "Nuclear Waste Transport and Residential Property Values: Estimating the Effects of Perceived Risks," Journal of Environmental Economics and Management, Elsevier, vol. 42(2), pages 207-233, September.
  21. ., 2004. "N," Chapters, in: An Eponymous Dictionary of Economics, chapter 14 Edward Elgar.
  22. ., 2004. "J," Chapters, in: An Eponymous Dictionary of Economics, chapter 10 Edward Elgar.
  23. ., 2004. "E," Chapters, in: An Eponymous Dictionary of Economics, chapter 5 Edward Elgar.
  24. ., 2004. "R," Chapters, in: An Eponymous Dictionary of Economics, chapter 17 Edward Elgar.
  25. Gabriel Ahlfeldt, 2011. "If Alonso Was Right: Modeling Accessibility And Explaining The Residential Land Gradient," Journal of Regional Science, Wiley Blackwell, vol. 51(2), pages 318-338, 05.
  26. J. Barkley Rosser, 2009. "Introduction," Chapters, in: Handbook of Research on Complexity, chapter 1 Edward Elgar.
  27. repec:cor:louvrp:-2297 is not listed on IDEAS
  28. Luc Anselin & Nancy Lozano-Gracia, 2008. "Errors in variables and spatial effects in hedonic house price models of ambient air quality," Empirical Economics, Springer, vol. 34(1), pages 5-34, February.
  29. Geoghegan, Jacqueline & Wainger, Lisa A. & Bockstael, Nancy E., 1997. "Spatial landscape indices in a hedonic framework: an ecological economics analysis using GIS," Ecological Economics, Elsevier, vol. 23(3), pages 251-264, December.
  30. Kim, Chong Won & Phipps, Tim T. & Anselin, Luc, 1998. "Measuring The Benefits Of Air Quality Improvement: A Spatial Hedonic Approach," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20959, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2013036. 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: (Alain GILLIS)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.