The paper examines the implicit assumptions made in hedonic studies of urban house prices . It is apparent that the technique can only be applied to city wide cross section analysis when sample data is capable of meaningful disaggregation . Previous uses of the technique are examined and it is suggested that the methodology is inappropriate for testing hypotheses derived from spatial residential models . Possible avenues of development for house price research are outlined.
Introductionstudies are considered and the suitability of techEmpirical studies of the determinants of urban house niques used are assessed in relation to these intended prices have proliferated rapidly in the last decade . research purposes . In this final section, a further, Indeed, the relative importance of this area in urban and possibly more policy relevant, formulation for economic housing research was summarised in and house price studies will be proposed . reflected by a review article (Ball, 1973) previously It should be stressed that the purpose of this published in Urban Studies . The purpose of this paper is not to cite a catalogue of errors in house paper is not to review the empirical content of further price research . Rather, it is intended that by outhouse price studies postdating Ball's review . Rather, lining a very general model of the housing market, the aim is to examine the theoretical assumptions it will be possible to question whether the currently implicit in house price studies . relevant issues of housing market theory and policy The intentions of this paper are threefold . Firstly, are being, or can be, raised and answered utilising a simple model of house price determinants is out-the current methodology . This is not to suggest lined . The model is non-controversial in the sense that early studies were somehow `wrong' or not that it consists of a series of sets of hypotheses, forerunners in housing research . The issues and intuitively accepted but largely empirically uncon-questions raised in this paper are lineal descendants firmed, and represents a conventional theoretical of static cross-section house price studies, not a view of the economic workings of the housing new unconnected area of research . It is none the market . Secondly, it is intended to establish the less pertinent to question the future direction of extent to which house price studies either directly urban house price research . Conventional house ignore intuitively important sets of house price prices may not be optimal vehicles of progress . The determinants or assume them not to be important . recent publication of three major works on urban Further, implicit assumptions regarding the func-house prices, which are almost definitive with respect tional form of house price determinants can also to the current methodology and which each suggest be considered . Within this second goal we shall some further, but different, developments of the pay particular attention to the currently widely technique, make current speculation a timely exerused m...