Spatial Interactions in Hedonic Pricing Models : The Urban Housing Market of Aveiro, Portugal. / Bhattacharjee, Arnab; Castro, Eduardo; Marques, Joao.
In: Spatial Economic Analysis, Vol. 7, No. 1, 03.2012, p. 133-167.Research output: Contribution to journal › Article
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TY - JOUR
T1 - Spatial Interactions in Hedonic Pricing Models
T2 - The Urban Housing Market of Aveiro, Portugal
A1 - Bhattacharjee,Arnab
A1 - Castro,Eduardo
A1 - Marques,Joao
AU - Bhattacharjee,Arnab
AU - Castro,Eduardo
AU - Marques,Joao
PY - 2012/3
Y1 - 2012/3
N2 - <p>Spatial heterogeneity, spatial dependence and spatial scale constitute key features of spatial analysis of housing markets. However, the common practice of modelling spatial dependence as being generated by spatial interactions through a known spatial weights matrix is often not satisfactory. While existing estimators of spatial weights matrices are based on repeat sales or panel data, this paper takes the approach to a cross-section setting. Specifically, based on an a priori definition of housing submarkets and the assumption of a multifactor model, toe develop maximum likelihood methodology to estimate hedonic models that facilitate understanding of both spatial heterogeneity and spatial interactions. The methodology, based on statistical orthogonal factor analysis, applied to the urban housing market of Aveiro (Portugal) at two different spatial scales, provides exciting inferences on the spatial structure of the housing market.</p>
AB - <p>Spatial heterogeneity, spatial dependence and spatial scale constitute key features of spatial analysis of housing markets. However, the common practice of modelling spatial dependence as being generated by spatial interactions through a known spatial weights matrix is often not satisfactory. While existing estimators of spatial weights matrices are based on repeat sales or panel data, this paper takes the approach to a cross-section setting. Specifically, based on an a priori definition of housing submarkets and the assumption of a multifactor model, toe develop maximum likelihood methodology to estimate hedonic models that facilitate understanding of both spatial heterogeneity and spatial interactions. The methodology, based on statistical orthogonal factor analysis, applied to the urban housing market of Aveiro (Portugal) at two different spatial scales, provides exciting inferences on the spatial structure of the housing market.</p>
KW - Spatial interactions and heterogeneity
KW - spatial weights matrix
KW - spatial hedonic model
KW - statistical factor analysis
KW - AIR-QUALITY
KW - PRICES
KW - REGRESSION
KW - SPECIFICATION
KW - DEPENDENCE
KW - GEOGRAPHY
KW - DEMAND
KW - PANELS
KW - TESTS
U2 - 10.1080/17421772.2011.647058
DO - 10.1080/17421772.2011.647058
M1 - Article
JO - Spatial Economic Analysis
JF - Spatial Economic Analysis
SN - 1742-1772
IS - 1
VL - 7
SP - 133
EP - 167
ER -