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Hedonic models and multiple regression analysis: an empirical strategy for estimating the marginal and implicit prices of the housing characteristics
Journal Title: RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO 
Author/s: Mauro Iacobini, Gaetano Lisi 
Year:  2016 Issue: Language: Italian 
Pages:  38 Pg. 5-42 FullText PDF:  361 KB
DOI:  10.3280/REST2016-002001
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This paper aims to provide an empirical strategy for estimating the marginal and implicit prices of the housing characteristics. Although the validity of economic theory for housing - first developed by Lancaster (1966) and Rosen (1974) - is unanimously recognised, its empirical application is anything but simple. Indeed, the transition from the theoretic models to the empirical specifications requires of addressing several important issues, viz.: finding the most appropriate hedonic price function; selecting the most influential housing characteristics, as well as the most suitable transformation for the ordered qualitative variables; verifying the economic and statistic correctness of the results, and, eventually, comparing the alternative and correct models. This paper addresses all of these issues in a case study related to the Italian housing market.
Keywords: Multiple regression analysis, hedonic models, hedonic price function, hedonic price, implicit prices, marginal prices
Jel Code: C1, C13, R21, R31.

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Mauro Iacobini, Gaetano Lisi, Hedonic models and multiple regression analysis: an empirical strategy for estimating the marginal and implicit prices of the housing characteristics in "RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO" 2/2016, pp. 5-42, DOI:10.3280/REST2016-002001

   

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