Some Evidence on the Intertemporal Stability of Hedonic Price Functions

Edmonds, Radcliffe G.

doi:10.2307/3146161

Cited by 12 publications

(7 citation statements)

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“…5. The semi-logarithm function is used in the light of the findings from most of the studies on functional form by means of the Box-Cox transformation (Linneman, 1980;Edmonds, 1985;and Mok et al, 1995). Semi-logarithm function also produces a much smaller Akaike criterion (AIC), Schwarz criterion (SC) and sum of squared residues (SSE) estimates than linear and log-linear functions.…”

Section: Discussionmentioning

confidence: 99%

The Effects of Expected Transport Improvements on Housing Prices

2005

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Improvements in transport were commonly found to have a positive effect on the price of housing. As the construction of infrastructure often lasts for years, it is plausible to assume that investors will take expected improvements into consideration when pricing and trading neighbourhood properties. However, there have been few investigations of such effects. This paper is an empirical study of whether premiums were paid for the expected benefits offered by a new tunnel before its completion. The results showed that there were positive price expectation effects well before the completion of the tunnel. The expectation effects allow the government to finance infrastructure projects by selling land in the affected districts in advance.

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Section: Discussionmentioning

confidence: 99%

The Effects of Expected Transport Improvements on Housing Prices

2005

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“…Using data from the 1970s and 1980s, a number of prominent hedonic price model studies of urban property values included a variable indicating whether the road adjacent to a property was paved. Results based on the earlier data suggested a statistically significant and sizable effect (Edmonds, 1985), whereas studies using the more recent data did not (Rasmussen & Zuehlke, 1990; Zuehlke, 1987). Our study follows this line of thinking directly, focused on how differences in the quality of paved roads adjacent to a property might affect value.…”

Section: Literature Reviewmentioning

confidence: 80%

Pavement Condition and Residential Property Values: A Spatial Hedonic Price Model for Solano County, California

Seo

Salon

Shilling

et al. 2018

Public Works Management & Policy

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Transportation agencies invest billions of dollars every year in resurfacing roadways, ostensibly to improve the travel experience. When locally funded, one justification for increased expenditure on the pavement surface is that it could increase property values. We evaluated this approach directly, using hedonic regression to estimate the relationship between pavement condition and residential property value in Solano County, California. We hypothesized that improving pavement condition would positively affect property values in two ways: directly as an indicator of neighborhood blight and indirectly through its effect on traffic conditions and noise. We estimated this relationship for the County as a whole and for each city within the County, controlling for spatial autocorrelation. The estimated relationship is small in magnitude and often not statistically significant. Although there are certainly reasons to improve pavement condition, our results suggest that increasing property value may not be one of them.

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“…The market price of the product implicitly reveals the hedonic price function relating characteristics to prices. The traditional use of hedonic estimation in housing studies has been for the purpose of making inferences about non-observable values of individual attributes, air quality, airport noise, commuter access (railway, subway or highway) and neighborhood features (Bajic, 1983;Diamond, 1980;Edmonds, 1985;Wang et al, 1991), or for compensating for property differences in regional comparisons (Forrest, 1991). The technique is also commonly used for valuation purposes.…”

Section: Hedonic Estimationmentioning

confidence: 99%

Estimating the market value of a proposed townhouse development

Janßen

Yang

1999

Journal of Property Investment &Amp; Finance

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An appraisal by an accredited appraiser is often necessary before a proposed development can receive a commitment for financing from a financial institution. Such pre-construction appraisals are often more difficult to complete than those where the subject property is already developed and accessible for inspection. In this article we are performing a valuation of a proposed townhouse complex prior to its construction. Hedonic estimation is used to estimate the market value of the proposed development. The estimated value of the complex as a whole, and of the individual units, is compared to the prices obtained as the townhouses were built and sold. Insights with respect to the feasibility of the approach for the estimation of the gross retail value of proposed developments are discussed.Helpful comments by an anonymous referee are gratefully acknowledged.

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Some Evidence on the Intertemporal Stability of Hedonic Price Functions

Cited by 12 publications

References 0 publications

The Effects of Expected Transport Improvements on Housing Prices

The Effects of Expected Transport Improvements on Housing Prices

Pavement Condition and Residential Property Values: A Spatial Hedonic Price Model for Solano County, California

Estimating the market value of a proposed townhouse development

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