TY - UNPB
T1 - Spatial interactions in hedonic pricing models
T2 - The urban housing market of Aveiro, Portugal
AU - Bhattacharjee, Arnab
AU - Anselmo de Castro, Eduardo
AU - Marques, Joao Lourenco
N1 - M1 - Discussion paper
PY - 2011
Y1 - 2011
N2 - 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 this approach to a cross-section setting. Specifically, based on an a priori definition of housing submarkets and the assumption of a multifactor model, we 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, is applied to the urban housing market of Aveiro, Portugal at two different spatial scales.
AB - 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 this approach to a cross-section setting. Specifically, based on an a priori definition of housing submarkets and the assumption of a multifactor model, we 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, is applied to the urban housing market of Aveiro, Portugal at two different spatial scales.
KW - spatial econometrics
KW - spatial heterogeneity
KW - spatial dependence
KW - spatial scale
KW - statistical factor analysis
KW - spatial weights matrix
KW - hedonic pricing
M3 - Working paper
T3 - Dundee Discussion Papers in Economics
BT - Spatial interactions in hedonic pricing models
PB - University of Dundee
CY - Dundee
ER -
