log-linear model, representing the percentage of implicit prices provided by each attribute, and
the monetary value of those implicit prices calculated by the expression:
implicit price = βi ■ e mean dependent vaπable
These implicit prices indicate marginal variations in housing prices, measured in Euros,
when increasing the corresponding continuous independent variable by one unit or when the
given attribute is present, in the case of dummy independent variables. The rest remain
constant for each case.
TABLE 3
|
Impact of explanatory variables on housing prices and implicit prices | ||
|
Variables |
IMPACT ON |
IMPLICIT PRICE |
|
SURFACE AREA* |
0.0037 |
608.41 € |
|
NUMBER OF ROOMS |
0.0235 |
4,790.83 € |
|
NUMBER OF BATHROOMS* |
0.1263 |
16,409.62 € |
|
AGE OF THE BUILDING |
-0.0025 |
- 514.59 € |
|
FLOORS |
-0.0103 |
- 2,093.56 € |
|
DISTRICT2 |
0.1538 |
31,284.45 € |
|
DISTRICT4 |
-0.0304 |
- 6,180.19 € |
|
DISTRICT5 |
-0.1463 |
- 29,759.33 € |
|
DISTRICT6 |
-0.0452 |
- 9,191.76 € |
|
DISTRICT7 |
-0.0332 |
- 6,757.22 € |
|
DISTRICT10 |
0.0339 |
6,902.43 € |
|
DISTANCE TO DOWNTOWN |
0.0724 |
14,736.17 € |
|
PROXIMITY TO THE SEA |
0.1350 |
27,466.94 € |
|
APARTMENT/STUDIO |
-0.0822 |
- 16,728.14 € |
|
DETACHED HOUSE |
0.6846 |
139,304.64 € |
|
ATTIC FLAT |
0.0812 |
16,529.12 € |
|
NEW |
0.0414 |
8,426.22 € |
|
NEEDING REFURBISHING |
-0.0904 |
- 18,399.10 € |
|
CARETAKER |
0.0486 |
9,887.85 € |
|
ELEVATOR |
0.0481 |
9,779.49 € |
|
PRIVATE PARKING |
0.1069 |
21,758.65 € |
|
POOR LIGHT |
-0.1628 |
- 33,122.16 € |
|
DOUBLE GLAZING |
0.0269 |
5,468.36 € |
|
BUILT-IN WARDROBES |
0.0474 |
9,635.37 € |
|
d1 |
-0.3872 |
- 78,795.04 € |
|
d2_____________________________ |
____________0.5137 |
104,519.42 € |
* Calculated as in Lassibille (1994), taking the mean value of the attribute
** All dummy variables were calculated according to Halvorsen and
Palmquist (1980)
Given that these implicit prices are marginal contributions to the mean housing price,
the market very positively values the following attributes: the dwelling is a detached house,