TABLE 1
Some contributions to the application of hedonic methodology to the housing market
|
1. Obtaining the hedonic price | ||
|
1.1. |
Structural Characteristics |
Bartik (1987), Brueckner and Colwell (1983), Can (1992), |
|
1.2. |
Location Attributes |
Adair et al. (1996), Adair et al. (2000), Benson et al. (1998), |
|
1.3. |
Neighborhood Attributes |
Bengochea M. (2003), Cervero and Duncan (2004), |
|
2. Obtaining price indexes |
Butler (1982), Englund et al (1998), Goodman (1978), Haurin | |
Despite the theoretical problems derived from the estimation of the model’s parameters,
these contributions have shown the usefulness of hedonic methodology to identify the factors
determining house prices and their quantification.
Data and empirical model
The objective of this study is to analyze the purchase of dwellings (and therefore, it
excludes tenancies) without legal restrictions to their sale. For the purpose of this research, this
market is considered to be single and homogeneous, and therefore it is implicitly assumed that
all the commodities analyzed are effectively interchangeable. In this way, and as indicated
earlier, hedonic regression is estimated by assuming that the attributes and prices of the
dwellings under analysis are as homogeneous as possible to reduce biases in the estimation of
hedonic prices of house attributes.
The housing market chosen was Malaga city. For this analysis, the city was divided into
the ten districts established by the local planning authorities. It is of note that the Census of
Population and Housing for 2001 recorded a total of 217,079 dwelling units in Malaga city on
the 31st of December 2001, thus comprising the houses that potentially would make up the
statistical population of our work.