Hedonic analysis in a spatial context: theoretical problems in valuing location-specific amenities

Graves, Philip E. and Knapp, Thomas A. (1985): Hedonic analysis in a spatial context: theoretical problems in valuing location-specific amenities. Published in: Economic Record , Vol. 61, No. 175 : pp. 737-743.

Abstract

Hedonic analysis is frequently implemented to generate implicit prices for location-specific amenities within single markets, either in cross-city wage differentials or within-city rent gradients. Amenities are shown to be generally priced in both land and labor markets, with single market valuations tending to understate true amenity values. Establishing a correct multi-market amenity valuation model is seen to depend on the resolution of a host of additional issues.

• Item Type: MPRA Paper
• Language: English
• Keywords: Amenities; hedonic models; wage differentials; property value differentials; spatial modeling
• Subjects: A - General Economics and Teaching > A1 - General Economics; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J61 - Geographic Labor Mobility; Immigrant Workers; N - Economic History > N5 - Agriculture, Natural Resources, Environment, and Extractive Industries; C - Mathematical and Quantitative Methods > C3 - Econometric Methods: Multiple; Simultaneous Equation Models; Multiple Variables; Endogenous Regressors > C31 - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; D - Microeconomics > D1 - Household Behavior and Family Economics

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