This paper proposes arithmetic and geometric Paasche quality-adjusted price indexes that combine micro data from the base period with macro data on the averages of asset prices and characteristics at the index period. The suggested index has two types of advantages relative to traditional Paasche indexes: (i) simplification and cost reduction of data acquisition and manipulation; and (ii) poten...

This paper estimates the value of Internet information by using the hedonic price model (HPM). We specify a hedonic price function, and measure the consumer’s willingness to pay for attributes to the Internet connection charge. We also identify a functional form for the HPM by using the Box–Cox transformation of the variables in our analysis. Our results indicate that the variation in the Inter...

Following Lancaster’s (1966, 1979) own interpretation of his characteristics approach to consumer theory, this contribution focuses on the theoretical and empirical arguments questioning the smoothness of traditional hedonic price estimation techniques. Indeed, Lancaster argued strongly against “combinability”, i.e., that any efficient combination of characteristics is feasible and sensible, wh...

This study estimates the influence of proximity to water bodies and park amenities on residential housing values in Knox County, Tennessee, using the hedonic price approach. Values for proximity to water bodies and parks are first estimated globally with a standard ordinary least squares (OLS) model. A locally weighted regression model is then employed to investigate spatial nonstationarity and...

The valuation of French Canadian paintings is analyzed empirically. Using a sample of auction prices for major French Canadian painters for the period 1968-2005, we run hedonic regressions to analyze the influence of various factors, including painter identity, on auction prices, as well as to construct a market price index. This index is used in a second stage analysis in which we analyze the ...

Spatial network accessibility was found to be significant when associating with house prices using the hedonic price approach. These results suggest some individuals are willing to pay more for spatial isolation while some individuals will pay more for spatial co-presence. An obvious limitation of earlier research is a lack of comparative analysis between cities. Focusing on a single case study...

Abstract—In urban area, several landmarks may affect housing price and rents, and hedonic analysis should employ distance variables corresponding to each landmarks. Unfortunately, the effects of distances to landmarks on housing prices are generally not consistent with the true price. These distance variables may cause magnitude error in regression, pointing a problem of spatial multicollineari...

This article examines the effect on price of different characteristics of holiday hotels in the sun-andbeach segment, under the hedonic function perspective. Monthly prices of the majority of hotels in the five major tourist regions in the Spanish continental Mediterranean coast were gathered from May to October 1999, from the tour operator catalogues. Hedonic functions are specified as random-...