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Hedonic Model (hedonic + model)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	100%

Selected Abstracts

Pricing U.S. North Atlantic bluefin tuna and implications for management

AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 2 2001
Michael T. Carroll
Bluefin tuna is regarded as a high-quality product in the Japanese market and is characterized by an unusual marketing system by seafood industry standards. Each fish is individually inspected for various quality attributes before being flown to Japan for the fresh tuna market. The first objective of this study is to formally evaluate the degree to which the price of U.S. fresh bluefin tuna is determined by quality attributes of each fish, rather than by just the quantity supplied. This is accomplished using a Hedonic model. The results support the hypothesis that the fresh bluefin tuna price is, in fact, significantly influenced by the quality attributes of the fish, including the freshness, fat content, color, and shape. Interesting implications for public management of this highly valued resource arise from the results. [Econ-Lit citation: L150, L190, L660] © 2001 John Wiley & Sons, Inc. [source]

Spatial Effects within the Agricultural Land Market in Northern Ireland

JOURNAL OF AGRICULTURAL ECONOMICS, Issue 1 2003
Myles Patton
The importance of dealing properly with spatial effects, such as spatial autocorrelation, in cross-sectional econometric estimation has become more widely recognised in recent years. Spatial autocorrelation is similar in many ways to serial correlation, but while the latter is ordered on a one-dimensional time axis, the former is ordered in two dimensions. The multi-directional nature of spatial dependence means that specialised techniques are needed for diagnostic testing and estimation purposes. This paper uses these specialised diagnostics to test for spatial effects within a hedonic pricing study of the agricultural land market. The tests indicate that spatial autocorrelation (in the form of spatial lag dependence) and spatially distinct sub-markets (or spatial heterogeneity) are present. Ignoring these effects in the estimation process is likely to lead to biased parameter estimates. Consequently, we re-specify the hedonic model to allow for these spatial effects. The presence of spatial lag dependence suggests that there is circularity of price setting within the agricultural land market. This means that agricultural land prices are not solely determined by the inherent characteristics of the land, but tend to reflect also the average local price per acre. [source]

An analysis of the neighborhood impacts of a mortgage assistance program: A spatial hedonic model

JOURNAL OF POLICY ANALYSIS AND MANAGEMENT, Issue 4 2010
Wenhua Di
Down payment or closing cost assistance is an effective program in addressing the wealth constraints of low-and moderate-income homebuyers. However, the spillover effect of such programs on the neighborhood is unknown. This paper estimates the impact of the City of Dallas Mortgage Assistance Program (MAP) on nearby home values using a hedonic model of home sales from 1990 to 2006. We define neighborhoods of 1,000 feet around each sale and estimate the average differences in sales prices between neighborhoods with various numbers of MAP properties before and after their appearance. We find that MAP properties tend to locate in neighborhoods with lower property values; however, unless a concentration of MAP properties forms, the infusion of MAP properties has little detrimental impact on neighboring property values. Moreover, low concentration of MAP properties has a modest positive impact on surrounding property values. © 2010 by the Association for Public Policy Analysis and Management. [source]

The Effect of Clustering on Office Rents: Evidence from the Amsterdam Market

REAL ESTATE ECONOMICS, Issue 2 2009
Maarten G.J. Jennen
This article examines the rent effects of office clustering in the Amsterdam office market for the period 2000,2005. We isolate the rent effects of location density based on geographic information system (GIS) methodology, while controlling for variations in object characteristics in a cross-sectional hedonic model. While controlling for the age, location and quality of the object, we find a strong positive effect of being located in dense office areas. We find that the vicinity of other office objects is priced into rent levels, regardless of market conditions. This article extends existing literature by examining the influence of clustering outside the United States, during changing economic tides and by application of novel methodology, based on objective clustering schemes, which can be replicated for other geographic areas. [source]

Flood prone risk and amenity values: a spatial hedonic analysis

AUSTRALIAN JOURNAL OF AGRICULTURAL & RESOURCE ECONOMICS, Issue 4 2010
Oshadhi Samarasinghe
This study examines the impact of flood-hazard zone location on residential property prices. The study utilises data from over 2000 private residential property sales occurred during 2006 in North Shore City, New Zealand. A spatial autoregressive hedonic model is developed to provide efficient estimates of the marginal effect of flood prone risks on property prices. Results suggest that the sale price of a residential property within a flood prone area is lower than an equivalent property outside the flood prone area. The flood plain location discount is reduced by the release of public information regarding flood risk. [source]