A hedonic pricing method to estimate the value of waterfronts in the Gulf of Mexico

2019 ◽  
Vol 41 ◽  
pp. 185-194 ◽  
Author(s):  
Ram P. Dahal ◽  
Robert K. Grala ◽  
Jason S. Gordon ◽  
Ian A. Munn ◽  
Daniel R. Petrolia ◽  
...  
Keyword(s):  
Gulf Of Mexico ◽  
Hedonic Pricing ◽  
Hedonic Pricing Method

Irrigation Water Valuation Using Spatial Hedonic Models in GIS Environment

2012 ◽  
pp. 308-320
Author(s):  
Zisis Mallios
Keyword(s):  
Irrigation Water ◽  
Regression Models ◽  
Spatial Regression ◽  
Hedonic Pricing ◽  
Spatial Lag Model ◽  
Hedonic Pricing Method ◽  
Spatial Weights Matrix ◽  
Spatial Regression Models ◽  
Gis Environment ◽  
Value Of Irrigation Water

Hedonic pricing is an indirect valuation method that applies to heterogeneous goods investigating the relationship between the prices of tradable goods and their attributes. It can be used to measure the value of irrigation water through the estimation of the model that describes the relation between the market value of the land parcels and its characteristics. Because many of the land parcels included in a hedonic pricing model are spatial in nature, the conventional regression analysis fails to incorporate all the available information. Spatial regression models can achieve more efficient estimates because they are designed to deal with the spatial dependence of the data. In this paper, the authors present the results of an application of the hedonic pricing method on irrigation water valuation obtained using a software tool that is developed for the ArcGIS environment. This tool incorporates, in the GIS application, the estimation of two different spatial regression models, the spatial lag model and the spatial error model. It also has the option for different specifications of the spatial weights matrix, giving the researcher the opportunity to examine how it affects the overall performance of the model.

scholarly journals Determinants of Wine Prices: A Systematic Literature Review

Competitio ◽  
2021 ◽  
Vol 19 (1-2) ◽  
pp. 1-15
Author(s):  
Péter Gál
Keyword(s):  
Web Of Science ◽  
Hedonic Pricing ◽  
Decision Makers ◽  
Economic Literature ◽  
Jel Codes ◽  
Quality Ratings ◽  
Wide Range ◽  
Objective Quality ◽  
Hedonic Pricing Method ◽  
The Relationship

Wine is a highly differentiated product sold at a wide range of different prices. This article aims to provide a systematic review of the literature written on the determinants of wine prices globally. The article runs a search on the combination of keywords “wine”, “price”, “determinant” in the Web of Science, Scopus, JSTOR, ProQuest, and Science Direct databases. Based on a final set of 46 articles written between 1998 and 2018, results suggest that terroir and quality ratings are the most significant determinants of wine prices, while objective quality and label data also determines wine prices, though to a different extent and with a different sign in some cases. The hedonic pricing method was the most common way of analyzing the relationship between wines prices and their determinants, and results are similar for most regions and varieties. We believe that our results can be useful for researchers, stakeholders, and even for decision-makers in better understanding the factors lying behind wine prices. Journal of Economic Literature (JEL) codes: D12, D40 Q11

scholarly journals VALUATION OF MARKET RENTAL VALUE OF A PLANNED DORMITORY USING HEDONIC PRICING METHOD: A CASE STUDY OF POLYTECHNIQUE OF STATE FINANCE STAN, INDONESIA

2021 ◽  
Vol 19 (17) ◽  
Author(s):  
Doni Triono ◽  
Akhmad Solikin
Keyword(s):  
Sampling Technique ◽  
Correlation Effect ◽  
Hedonic Pricing ◽  
Hedonic Pricing Model ◽  
Room Size ◽  
Statistical Application ◽  
Hedonic Pricing Method ◽  
State Finance ◽  
Market Preference ◽  
Rental Value

This study determines the attributes that affect the market rental value of dormitories using the Hedonic Pricing Model. The proportional stratified random sampling technique was used to obtain data from 1,292 PKN STAN students in levels 1 to 3, which was analyzed using the SPSS statistical application. Based on the calculation, the dormitory value varies between IDR11,719,521 (RM3,424.82) to IDR15,482,242 (RM4524,41). The determinants that have a significant positive effect on dormitory value are bathroom location, average remittances per month, earnings per month, room size, gender, and origin, while the type of residence attribute has a negative correlation effect. The results of this study will be beneficial inputs for the PKN STAN in determining the market rental value, the quality of buildings and facilities are in accordance with the market preference.

Shared amenities’ impacts on condominium resale values

2019 ◽  
Vol 13 (2) ◽  
pp. 281-297 ◽  
Author(s):  
Kayo Tajima
Keyword(s):  
Original Data ◽  
Hedonic Pricing ◽  
Unit Price ◽  
Data Set ◽  
Content Type ◽  
Meeting Room ◽  
Residential Unit ◽  
Hedonic Pricing Method ◽  
The Impact ◽  
Over Time

Purpose This study aims to analyze whether and how condominium shared utilities and facilities (e.g. community spaces), of which buyers assume a share of the ownership upon acquisition of a residential unit, affect the condominium unit price over time. Design/methodology/approach The transaction price of each unit reflects the quality of the residential unit and the properties of the shared facilities. Based on the hedonic pricing method, this study assesses the impact of shared amenities on unit resale prices, using an original data set on condominium unit resale transactions and the status of housing characteristics for both condominium units and condominium buildings. Findings Results show that holding other conditions constant, a meeting room and an external space that can host events increase the unit resale price by approximately 7 and 16 per cent, respectively. Some community amenities such as a meeting room may increase its impact later in the condominium’s lifetime. Research limitations/implications Because of the proprietary nature of data, the analysis focuses on high-end condominium properties in central Tokyo. Although it is difficult to single out the shared amenities’ effects on condominium resale prices from potentially confounding factors, this study partially overcomes this issue by including explanatory geographical variables (e.g. ground heights). Practical implications The results suggest that a shared facility that hosts social interactions among residents significantly affects the resale market value of housing units and that their magnitudes may change over time. Originality/value To the best of the author’s knowledge, this study provides the first empirical evidence of the impacts of shared structures on condominium unit sales using micro-level transaction data in Japan.

scholarly journals Methods of Tree Appraisal: A Review of Their Features and Application Possibilities

2012 ◽  
Vol 38 (4) ◽  
pp. 130-140
Author(s):  
M.A. Grande-Ortiz ◽  
E. Ayuga-Téllez ◽  
M.L. Contato-Carol
Keyword(s):  
Mixed Method ◽  
Parametric Method ◽  
Economic Value ◽  
Hedonic Pricing ◽  
Urban Trees ◽  
Different Types ◽  
Hedonic Pricing Method ◽  
Integrated Methods ◽  
Basic Functions ◽  
Location Type

Urban trees perform a number of basic functions related to the environment and the welfare of city dwellers (ecological, recreational, psychological), although their benefits are not readily quantifiable. However, in certain situations, it is essential to assign an economic value to the trees. There are currently various methods for valuing the benefits of trees and greenspaces in human settlements, including statistical methods, the travel cost method, contingent valuation, the hedonic pricing method, and integrated methods. However, these methods are not used in official valuations of urban trees; in these cases, appraisal methods are used. The aim of this paper is to study the appraisal methods used for their detailed features and the possibilities of their application. The main conclusion of this review is that there are a number of methods with different types of application. The best method is selected according to tree location, type of land ownership, and the availability of data. Methods with a higher degree of applicability are CTLA, a parametric method of low difficulty, and Contato, a mixed method of medium difficulty. In any case, it is advisable to increase efforts to objectify the correction index in the case of parametric and mixed methods.

scholarly journals Farmland value in the “Conegliano Valdobbiadene Prosecco Superiore PGDO” area. An application of the Hedonic Pricing method.

Aestimum ◽  
2021 ◽  
Vol 78 ◽  
pp. 5-33
Author(s):  
Tiziano Tempesta ◽  
Isabella Foscolo ◽  
Nicola Nardin ◽  
Giorgio Trentin
Keyword(s):  
Statistical Significance ◽  
Hedonic Pricing ◽  
Coefficient Of Determination ◽  
Land Market ◽  
Model Parameters ◽  
Absolute Deviation ◽  
Market Prices ◽  
Land Prices ◽  
Hedonic Pricing Method ◽  
Territory Characteristics

In the last 30 years, numerous studies analysed the factors that affect land prices mainly using the Hedonic Pricing method. These studies have shown that many factors can affect land prices (e.g. land and surrounding territory characteristics, accessibility, proximity to urban area, etc.). However, they rarely addressed the analysis of the reliability of the models by comparing the estimated values to the observed one. Attempting to face this problem, our study analysed the land market of the “Conegliano Valdobbiadene Prosecco Superiore PGDO” area. Despite the quite high coefficient of determination (r2 = 0.76) and statistical significance of the model parameters, we found that the percentage absolute deviation between observed and estimated value is higher than 30% in 34% of cases. Our results seem to suggest that future researches should devote particular attention to the analysis of the discrepancies existing between estimated values and market prices in order to support the appraisal activity of professional valuers.

Willingness to Pay in Hedonic Pricing Models

2021 ◽  
Author(s):  
David Wolf ◽  
H. Allen Klaiber
Keyword(s):  
Housing Price ◽  
Hedonic Pricing ◽  
Data Availability ◽  
Second Stage ◽  
Nonmarket Goods ◽  
Welfare Evaluation ◽  
Hedonic Pricing Method ◽  
Implicit Prices ◽  
Housing Attributes ◽  
Function Information

The value of a differentiated product is simply the sum of its parts. This concept is easily observed in housing markets where the price of a home is determined by the underlying bundle of attributes that define it and by the price households are willing to pay for each attribute. These prices are referred to as implicit prices because their value is indirectly revealed through the price of another product (typically a home) and are of interest as they reveal the value of goods, such as nearby public amenities, that would otherwise remain unknown. This concept was first formalized into a tractable theoretical framework by Rosen, and is known as the hedonic pricing method. The two-stage hedonic method requires the researcher to map housing attributes into housing price using an equilibrium price function. Information recovered from the first stage is then used to recover inverse demand functions for nonmarket goods in the second stage, which are required for nonmarginal welfare evaluation. Researchers have rarely implemented the second stage, however, due to limited data availability, specification concerns, and the inability to correct for simultaneity bias between price and quality. As policies increasingly seek to deliver large, nonmarginal changes in public goods, the need to estimate the hedonic second stage is becoming more poignant. Greater effort therefore needs to be made to establish a set of best practices within the second stage, many of which can be developed using methods established in the extensive first-stage literature.

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