Choice of functional form for hedonic price equations

Halvorsen, Robert; Pollakowski, Henry O.

doi:10.1016/0094-1190(81)90021-8

Cited by 424 publications

(178 citation statements)

References 20 publications

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“…The choice of the functional form of hedonic models is an empirical one as there is no compelling theoretical foundation for any particular form (Malpezzi, 2002;Halvorsen and Pollakowski 1981). The Panels in Table 2 shows how the coefficient on distance to the nearest heritage sites changes as the functional form changes for different categories.…”

Section: Sensitivity Of Cultural Heritage Coefficients To Different Fmentioning

confidence: 99%

Does the Housing Market Reflect Cultural Heritage? A Case Study of Greater Dublin

et al. 2013

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Does the housing market reflect cultural heritage? We estimate several specifications of a hedonic price equation to establish whether distance to cultural heritage site is capitalised into housing prices in Greater Dublin, Ireland. The results show that distance to the nearest historic building has a significant and robust effect on housing prices. To our knowledge this is the first application of the hedonic price method to cultural heritage.

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Section: Sensitivity Of Cultural Heritage Coefficients To Different Fmentioning

confidence: 99%

Does the Housing Market Reflect Cultural Heritage? A Case Study of Greater Dublin

et al. 2013

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“…Only the overall prices of hotel rooms, including particular combinations of attributes, are observed. Our analysis draws upon the hedonic-prices tradition of fitting statistical models to estimate the effect of attributes on price (early theoretical developments in hedonic prices are those of Rosen, 1974;Halvorsen and Pollakowski, 1981;and Cassel and Mendelsohn, 1985. Empirical applications in the tourist sector are found in Sinclair, Clewer and Pack, 1990;Clewer, Pack and Sinclair, 1992;and Jaime-Pastor, 1999).…”

mentioning

confidence: 99%

Effect on Prices of the Attributes of Holiday Hotels: A Hedonic Prices Approach

Espinet

Sáez²,

Coenders³

et al. 2003

Tourism Economics

238

232

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This article examines the effect on price of different characteristics of holiday hotels in the sun-and-beach segment. The effect on price is estimated under the hedonic function perspective by means of random effect models, known also as mixed or panel models. Some 82,000 prices were gathered between 1991 and 1998 from tour operator catalogues. The study reveals huge price differences between 4-star hotels and the rest, coupled with practically no difference between 1-star and 2-star hotels. Other attributes with a significant effect on price are town, hotel size, distance to the beach and availability of parking place. The results can assist hotel managers in shaping pricing and investment strategies.Keywords: pricing; hedonic functions; hotels; random effect models; hierarchical models.This article studies the effect on prices of the different characteristics or attributes of a holiday hotel in the sun-and-beach segment. Such attributes include, among others, the town in which the hotel is located, star category, size, and the services available to guests. Prices are examined from the supply perspective, assuming that the hotel market is in a monopolistic competition situation in which the hotel manager can differentiate its offer. We consider tour operators' prices, which coincide with what most tourists pay as tour operators constitute the most frequent distribution channel for tourist hotels in the sun-and-beach market segment (Espinet, 1999).

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“…Maximum values of the likelihood function of the restricted and unrestricted models are used to test the significance of the parameter transformation in the unrestricted model. The test statistic employed to determine the confidence interval for λ: (4) where λ is the restricted lambda, λ* is the unrestricted lambda, L max is the value of the likelihood function that is related to each model, and α is the level of significance (Halvorsen and Pollakowski 1981). This test statistic (4) may be used to test the H 0 , which asserts that the correct functional form is double-log (λ = 0) or linear (λ = 1).…”

Section: Methodsmentioning

confidence: 99%

Hedonic price analysis of the quality characteristics of Anatolian hard red wheat

Karaman¹,

Yavuz²

2014

AGR ECON-CZECH

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Th e study analyses the relations between the quality characteristics and price of the Anatolian Hard Red Wheat. It uses a data set consisting of the price and eight quality characteristics of the Anatolian Hard Red Wheat traded in spot transaction in each month of 2011 in the Polatli Commodity Exchange. Marginal implicit values of the quality characteristics of the Anatolian Red Hard Wheat traded in the spot market of the Polatli Commodity Exchange are determined through the hedonic price model. Th is model is estimated from the linear-log functional form. Results of the hedonic price model demonstrate that the quality characteristics, which are statistically signifi cant in the determination of price, namely, the protein content, the hectolitre weight, and the grain content damaged by pests and wheat bugs, are important factors in the purchasing decisions of fl our millers. As the protein content and the hectolitre weight of wheat increase by 1%, the price increases by TL 0.005 and TL 0.006, respectively. As the grain content damaged by pests and wheat bugs increases by 1%, the price of wheat drops by TL 0.0002. Th ese marginal implicit values are expected to encourage wheat producers to produce the higher quality wheat.

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Choice of functional form for hedonic price equations

Cited by 424 publications

References 20 publications

Does the Housing Market Reflect Cultural Heritage? A Case Study of Greater Dublin

Does the Housing Market Reflect Cultural Heritage? A Case Study of Greater Dublin

Effect on Prices of the Attributes of Holiday Hotels: A Hedonic Prices Approach

Hedonic price analysis of the quality characteristics of Anatolian hard red wheat

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