Hedonics

Taylor, Laura O.

doi:10.1007/978-94-007-7104-8_7

Cited by 28 publications

(11 citation statements)

References 117 publications

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“…The HPM (Rosen, 1974) is likely to be the most successful method for estimating the economic value of goods or services over the past decade. In particular, this method is often employed to measure the non-market feature of housing prices (Taylor, 2017).…”

Section: Methods For the Hedonic Analysismentioning

confidence: 99%

Estimating coastal premiums for apartment prices: Towards a new multilevel modelling approach

Ling

2021

Environment and Planning B: Urban Analytics and City Science

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This article attempts to assess ‘coastal premiums’ for apartment prices in Corsica, France. The coastal premium should consist of two parts, those related to the view of the Mediterranean Sea, and those associated with living close to beaches for access purposes. Views, being a qualitative and subjective variable, are difficult to measure and quantify. Further, apartments are located in neighbourhoods and then are situated in districts or at more aggregated levels. This induces complex spatial interactions. To deal with these, we first employ a viewshed analysis implemented in geographical information systems (GIS) to generate an objective, continuous measurement. We then develop a Bayesian spatial/spatiotemporal multilevel model, which integrates Leroux’s conditional autoregressive process with multilevel modelling for conducting a hedonic analysis in the presence of multiple-scale housing data. Since the developed model pertains to latent Gaussian models, estimation is carried out by integrated nested Laplace approximations. The results demonstrate that homebuyers have a higher marginal willingness to pay for larger views of the sea, and proximity to beaches produces positive impacts on apartment sale prices. Further, strong spatial spillovers emerge among high-level units, but heterogeneity dominates among apartments. Our findings illustrate the importance of coasts to homebuyers. Further, the estimated value permits planners and policymakers to assess the trade-off between developing and preserving land along the coast.

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Section: Methods For the Hedonic Analysismentioning

confidence: 99%

Estimating coastal premiums for apartment prices: Towards a new multilevel modelling approach

Ling

2021

Environment and Planning B: Urban Analytics and City Science

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“…The premise behind HPMs is that nearly identical houses in similar neighborhoods will be valued differently in the presence or absence of environmental amenities or disamenities. Housing prices will reflect this difference as consumers are willing to pay more to obtain certain environmental characteristics and are willing to pay less in the presence of some environmental disamenities (Taylor, 2017).…”

Section: 1029/2017wr022195mentioning

confidence: 99%

“…Little theoretical guidance exists on the choice of functional form, in part because the predicted hedonic price is the result of the behavior of many different buyers and sellers (Taylor, 2017). Estimates of marginal implicit prices can be highly sensitive to specification errors when using regression analysis of the hedonic price function (Abbott & Klaiber, 2013;Moeltner et al, 2017).…”

Section: Hedonic Regression Analysismentioning

confidence: 99%

“…Most hedonic regression equations suffer from multicollinearity, and choice of explanatory variables is left to the researcher. A simple linear functional form for equation (1) is generally not appropriate, and may result in biased marginal implicit price estimates (Taylor, 2017). The semilog functional form is most often used as recommended in Cropper et al (1988).…”

Section: Hedonic Regression Analysismentioning

confidence: 99%

“…Endogeneity occurs when unobservable variables impact both the treatment and the outcome. The main source of endogeneity in hedonic price regression estimates is omitted variables (Taylor, 2017). Location is a key predictor of house price, and distance to environmental variables plays a critical role in hedonic estimations.…”

Section: Hedonic Regression Analysismentioning

confidence: 99%

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Using Matching Methods to Estimate Impacts of Wildfire and Postwildfire Flooding on House Prices

Mueller

Lima

Springer

et al. 2018

Water Resources Research

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The increasing frequency and severity of landscape‐scale wildfire poses new challenges for forested watershed management. The Schultz Fire burned 6,100 ha on the steep slopes of San Francisco Mountain near Flagstaff, AZ, USA in 2010. Within a month of the wildfire, summer monsoon rains created flooding and debris flows 1–2 orders of magnitude greater than prewildfire rainfall events. We estimate a hedonic property model to determine the loss in house prices from the wildfire and postwildfire flooding. While several studies examine the effects of wildfires and flooding on housing prices separately, to our knowledge, no study has determined the effects of postwildfire flooding in a fire‐adapted watershed. Most hedonic property models estimating impacts of wildfire or flooding use regression analysis to predict impacts. We also contribute to the hedonic property model literature by using nonparametric matching techniques. We find a negative and statistically significant average treatment effect of wildfire and post‐wildfire flooding. The treatment effect, however, differs relative to distance to wildfire perimeter and distance to flood zones. For example, houses located within 5 km of the Schultz Fire perimeter have an estimated 31% loss, while houses within 20 km have an estimated 6% loss. In addition, prices for houses located within 100 m of the 5‐year flood drop by 10% after the flood, whereas prices for houses within 2 km drop by 5%. Our results indicate that careful consideration of the impacts of both wildfire and postwildfire flooding is essential for understanding the net benefits of forested watershed restoration.

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Valuing impacts of proximity to Saguaro National Park on house prices

Mueller

Loomis

Richardson

et al. 2021

Applied Eco Perspectives Pol

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Proximity to public lands is well established within the literature as having a positive effect on nearby house prices. However, little research exists examining the impact of proximity to national parks. We use a hedonic property model with matching methods to estimate the value of proximity to Saguaro National Park West and Tucson Mountain Park. We find positive impacts of proximity to each park, with a larger aggregate effect from proximity to Saguaro National Park West. Our results provide useful insight into the potential impacts of changes in land use designation on nearby house prices.

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Hedonics

Cited by 28 publications

References 117 publications

Estimating coastal premiums for apartment prices: Towards a new multilevel modelling approach

Estimating coastal premiums for apartment prices: Towards a new multilevel modelling approach

Using Matching Methods to Estimate Impacts of Wildfire and Postwildfire Flooding on House Prices

Valuing impacts of proximity to Saguaro National Park on house prices

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