Hedonic Prices, Economic Growth, and Spatial Dependence
This thesis consists of three papers on econometric modeling of spatial dependence. The awareness of interactions between actors is fundamental for understanding property markets as well as the growth of regions. In both cases, neighbors and neighboring markets may stimulate or hamper growth of values. From a modeling point of view, these interdependencies calls for spatial econometric models. In the thesis we introduce such methods in the analysis of regional property markets as well as in a comparative regional growth analysis. In the first paper, we estimate hedonic prices in the market for co-operative flats in the city of Umeå, Sweden, during 1998 and 1999. Structural, neighborhood, and accessibility characteristics are used as attributes in the hedonic price function. Important attributes were the rent, floor space, age, and population density. Two attractive nodes, although with different characteristics, were found. Thus there are signs supporting the view that Umeå has developed into a multi-nodal structure for property values. SAR-GM estimation was used due to signs of spatial error dependence. In the second paper, hedonic prices for single-family homes in two Swedish counties are estimated for two years. Parameter estimates are compared and changes in space and time analyzed. Spatial lag dependence is found to influence the results. Hence, four independent variables are lagged with a spatial weights matrix. Additional spatial error dependence is treated by SAR-GM estimation. Structural, neighborhood, and accessibility characteristics are used as attributes. The regional price pattern and its changes over time, is illustrated and identified with GIS maps. Proximity to the two county capitals, as well as the other municipality centers, influence property prices positively. This is also noticable over time, where values have risen for homes located near major population centers and those which have water provided by the municipality. Values are in addition largely a function of the quality of each home. The third paper examines the provincial pattern of growth in China during the period 1985-2000, testing the hypothesis that provinces with similar growth rates are more spatially clustered than would be expected by chance. The provincial economic growth is explained by the distribution of industrial enterprises, foreign direct investment, infrastructure, and governmental preferential policies. The neoclassical hypothesis of convergence is also tested. Indications of unconditional convergence does occur during the periods 1985-2000 and 1985-1990. In addition, conditional convergence is found during the sub-period 1990-1995. Evidence of spatial dependence between adjacent provinces has also been established, and in the econometric part, solved by a spatial lag, or alternatively a spatial error term, in the growth equation.
|Date of creation:||04 May 2004|
|Contact details of provider:|| Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden|
Phone: 090 - 786 61 42
Fax: 090 - 77 23 02
Web page: http://www.econ.umu.se/
More information through EDIRC
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.:
- Romer, Paul M, 1986.
"Increasing Returns and Long-run Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 94(5), pages 1002-1037, October.
- Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
- Chen, Jian & Fleisher, Belton M., 1996. "Regional Income Inequality and Economic Growth in China," Journal of Comparative Economics, Elsevier, vol. 22(2), pages 141-164, April.
- Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-380, December.
- S. Yao & Z. Zhang, 2001. "Regional Growth in China Under Economic Reforms," Journal of Development Studies, Taylor & Francis Journals, vol. 38(2), pages 167-186.
- Yao, S. & Zhang, Z., 1999. "Regional Growth in Chine under Economic Reforms," Papers 124, Portsmouth University - Department of Economics.
- Sala-i-Martin, Xavier X., 1996. "Regional cohesion: Evidence and theories of regional growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1325-1352, June.
- Sala-i-Martin, Xavier, 1994. "Regional Cohesion: Evidence and Theories of Regional Growth and Convergence," CEPR Discussion Papers 1075, C.E.P.R. Discussion Papers.
- Xavier Sala-i-Martin, 1994. "Regional cohesion: Evidence and theories of regional growth and convergence," Economics Working Papers 104, Department of Economics and Business, Universitat Pompeu Fabra.
- Tjalling C. Koopmans, 1963. "On the Concept of Optimal Economic Growth," Cowles Foundation Discussion Papers 163, Cowles Foundation for Research in Economics, Yale University.
- Demurger, Sylvie, 2001. "Infrastructure Development and Economic Growth: An Explanation for Regional Disparities in China?," Journal of Comparative Economics, Elsevier, vol. 29(1), pages 95-117, March.
- Xiaowen Tian, 1999. "Market Orientation and Regional Economic Disparities in China," Post-Communist Economies, Taylor & Francis Journals, vol. 11(2), pages 161-172.
- Esther Vaya Valcarce & Enrique Lopez Bazo & Rosina Moreno Serrano & Jordi Surinach Caralt, 2000. "Growth and externalities across economies. An empirical analysis using spatial econometrics," Working Papers in Economics 59, Universitat de Barcelona. Espai de Recerca en Economia.
- Robert J. Barro & Paul Romer, 1993. "Economic Growth," NBER Books, National Bureau of Economic Research, Inc, number barr93-1, September.
- Robert J. Barro & Paul M. Romer, 1991. "Economic Growth," NBER Books, National Bureau of Economic Research, Inc, number barr91-1, June.
- Can, Ayse, 1992. "Specification and estimation of hedonic housing price models," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 453-474, September.
- T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
- Edward M. Graham & Erika Wada, 2001. "Foreign Direct Investment in China: Effects on Growth and Economic Performance," Working Paper Series WP01-3, Peterson Institute for International Economics.
- Christopher H. Wheeler, 2001. "A Note on the Spatial Correlation Structure of County-Level Growth in the U.S," Journal of Regional Science, Wiley Blackwell, vol. 41(3), pages 433-449.
- Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 143-156.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:hhs:umnees:0631. 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: (David Skog)
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.