Additive Hedonic Regression Models with Spatial Scaling Factors: An Application for Rents in Vienna

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We apply additive mixed regression models (AMM) to estimate hedonic price equations. Terms of use: Documents in EconStor mayNon-linear effects of continuous covariates as well as a smooth time trend are modeled non-parametrically through P-splines. Unobserved district-specific heterogeneity is modeled in two ways: First, by location specific intercepts with the postal code serving as a location variable. Second, in order to permit spatial variation in the nonlinear price gradients, we introduce multiplicative scaling factors for nonlinear covariates. This allows highly nonlinear implicit price functions to vary within a regularized framework, accounting for district-specific spatial heterogeneity. Using this model extension, we find substantial spatial variation in house price gradients, leading to a considerable improvement of model quality and predictive power.

Modelling hedonic residential rents for land use and transport simulation while considering spatial effects

“…ose rent studies either use the net annual or monthly rent (Baranzini and Ramirez 2005;Baranzini and Schaerer 2007;Baranzini et al 2006;Brunauer et al 2009) or the monthly gross rent (Ban et al 2006). For other hedonic rent studies, it is not speci ed if gross or net rents have been used (e.g.…”

“…Djurdjevic et al 2008;Sirmans et al 1989;Valente et al 2005). Of all those studies, only a minority has focused on rents per square meter (Brunauer et al 2008), while the vast majority have been using the absolute rent or its log-transformation. e remainder of this article is organized as follows: Section 2 introduces the methods of spatial simultaneous autoregressive models and geographically weighted regression.…”

Empiric Study of Ship Maintenance Price Index based on The Hedonic Model

“…The first work of ship maintenance price hedonic model is the selection and quantification of ship maintenance hedonic characteristic [6] . Among the factors of ship maintenance price, the ship technology level, tonnage, rank and round turn of maintenance and district difference all can be selected as the hedonic characteristic of ship maintenance.…”

Boom and bust in the Estonian real estate market and the role of land tax as a buffer

“…With regard to the investigation of the informational efficiency of the housing market and speculative behaviour, the literature has addressed this problem through the application of different techniques, such as linear modelling (An-Sing et al, 2009;Case and Shiller, 1989), non-linear modelling (Miles, 2008;Gurkaynak, 2005), panel data (Zemčík and Mikhed, 2009), and non-linear hedonic price regression and spatial heterogeneity (Brunauer et al, 2009). In order to empirically assess the presence of a speculative bubble, we analyse here the relationship between house price and rent price and then provide a stationarity test (augmented Dickey-Fuller test, ADF) and a cointegration test.…”