Real estate market and the relevance of local features in a hedonic prices quantil-spatial analysis – the case of Belo Horizonte – Brazil

Furtado, BERNARDO (2007): Real estate market and the relevance of local features in a hedonic prices quantil-spatial analysis – the case of Belo Horizonte – Brazil.

Abstract

The main motivation of this paper is to identify how relevant the localization of a specific estate is in its market value. Furthermore, it aims to understand better how economic aspects influence and are influenced by urban space. In order to do so, a myriad of concepts is drawn from a variety of fields of science: from geography to architecture, from urbanism to economics, as well as methodologies, which are borrowed from statistics, econometrics and geoprocessing. The proposal of the paper follows the hedonic prices function literature, but suggests that a synthesis of the perception of urban amenities can be expressed by the element of the neighbourhood (as proposed by Lynch, 1997). A number of models are presented, tested and commented. The one with the best fit is the spatial error-lag (Anselin, 1988) specified with a ranking of neighbourhood income. A quantil analysis adds considerably to the understanding of the model.

• Item Type: MPRA Paper
• Language: English
• Keywords: real estate market, neighbourhoods, spatial econometrics, quantil analysis, Belo Horizonte
• Subjects: L - Industrial Organization > L8 - Industry Studies: Services > L85 - Real Estate Services; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R20 - General; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C21 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions

References

ALMEIDA, E. S. Curso de econometria espacial aplicada. Piracicaba: ESALQP-USP. 2004 ANSELIN, L. Spatial econometrics: methods and models. Dordrecht: Kluwer Academic. 1988. 284 p. ANSELIN, L. SpaceStat tutorial: a workbook for using SpaceStat in the analysis of spatial data. University of Illinois. Urbana-Champaign, p.263. 1992 ANSELIN, L. Exploring spatial data with GeoDaTM: a workbook. Urbana-Champaign, IL: Spatial Analysis Laboratory, Department of Geography, University of Illinois. 2005. 244 p. ANSELIN, L. e BERA, A. Spatial dependence in linear regression models with an introduction to spatial econometrics. In: A. Ullah e D. E. A. Giles (Ed.). Handbook of Applied Economic Statistics. New York: Marcel Dekker, 1998, p.237-289. BRASIL. Censo demográfico 2000: agregado por setores censitários dos resultados do universo. Documentação do arquivo. M. D. Planejamento e I. B. D. G. E. Estatística: 157 p. 2003. BRUECKNER, J. K., THISSE, J.-F., et al. Why is central Paris rich and downtown Detroit poor?: An amenity-based theory. European Economic Review, v.43, n.1, p.91-107. 1999. BUCHINSKY, M. Recent advances in quantile regression models. Journal of Human Resources, v.33, n.1, p.88-126. 1997. 26 CAN, A. e MEGBOLUGBE, I. Spatial Dependence and House Price Index Construction. Journal of Real Estate Finance and Economics, v.14, p.203-222. 1997. CULLEN, G. Townscape. London. 1961. 315 p. DRUCK, S., CARVALHO, M. S., et al. Análise espacial de dados geográficos. Brasília: Embrapa. 2004. 209 p. HARVEY, D. Social justice and city. Baltimore: Johns Hopkins University. 1973. 336 p. HERMANN, B. M. e HADDAD, E. A. Mercado Imobiliário e Amenidades Urbanas: A View Through the Window. Estudos Econômicos v.35, n.2, Abril-junho, p.237-269. 2005. JOHNSON, R. e WICHERN, D. Applied multivariate statistical analysis: Prentice Hall. 1998. 799 p. KOENKER, R. e BASSETT, G. Regression Quantiles. Econometrica, v.46, n.1, January, p.33-50. 1978. LYNCH, K. e CAMARGO, J. L. A imagem da cidade. São Paulo: Martins Sources. 1997. 227 p. MINGOTI, S. A. Análise de dados através de métodos de estatística multivariada. Belo Horizonte: Editora UFMG'. 2005. 297 p. MONTE-MÓR, R. L. D. M. O que é o urbano no mundo contemporâneo. Textos para discussão. 281: 14 p. 2006. NAIK, D. N. e KHATTREE, R. Revisiting olympic track records: some practical considerations in the principal component analysis. The American Statistician, v.50, n.2, p.140-144. 1996. NETO, E. Estimação do preço hedônico: uma aplicação para o mercado imobiliário da cidade do Rio de Janeiro. (dissertação de mestrado). EGFV, Rio de Janeiro, 2002. ROSSI, A. A arquitetura da cidade. São Paulo: Martins Sources. 2001. 309 p. SANTOS, M. Espaço e método. São Paulo: Nobel. 1992. 88 p. SHEPPARD, S. Hedonic analysis of housing markets. In: P. Cheshire e E. S. Mills (Ed.). Handbook of regional and urban economics. Amsterdam: North-Holland, v.3, 1999, p.1595-1636. SINGER, P. O Uso do Solo na Economia Capitalista. In: E. Maricato (Ed.). A produção capitalista da casa e da cidade no Brasil industrial. São Paulo: Alfa-ômega, 1982, p.21-36. SMIRNOV, O. e ANSELIN, L. Fast maximum likelihood estimation of very large spatial autoregressive models: A characteristic polynomial approach. Computational Statistics and Data Analysis, v.35, p.301-319. 2001. SOJA, E. W. Geografias pós-modernas: a reafirmação do espaço na teoria social critica. Rio de Janeiro: Jorge Zahar. 1993. 324 p. SOJA, E. W. Third space: expanding the geographical imagination. Oxford: Blackwell Publishers. 1996. 354 p. 27 TOBLER, W. R. A computer movie simulating urban growth in the Detroit region. Economic Geography, v.46, p.234-240. 1970. TUAN, Y. Topofilia: um estudo de percepção, atitudes e valores do meio ambiente. São Paulo. 1980. 288 p. TUAN, Y. Espaço e lugar: a perspectiva da experiência. São Paulo: DIFEL. 1983. 250 p. WHITTLE, P. On stationary processes in the plane. Biometrika, v.41, p.434-449. 1954. WOOLDRIDGE, J. M. Econometric analysis of cross section and panel data. Cambridge, Mass.: MIT Press. 2002. 752 p.