Spatial heterogeneity and spatial bias analyses in hedonic price models: some practical considerations

A great number of contemporary studies are incorporating explicit consideration of spatial effects in the estimation of hedonic price functions. At the most basic level, interactive spatial regime models are employed to detect the presence of spatial heterogeneity in datasets. A full-scale spatial a...

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Main Author:	Khalid, Haniza
Format:	Article
Language:	English
Published:	Bulletin of Geography. Socio-economic Series Nicolaus Copernicus University Lwowska 1 87-100 Toruń POLAND 2015
Subjects:	HA29 Theory and method of social science statistics HD1401 Agriculture
Online Access:	http://irep.iium.edu.my/42869/ http://irep.iium.edu.my/42869/ http://irep.iium.edu.my/42869/ http://irep.iium.edu.my/42869/1/BGSS_article.pdf

id	iium-42869
recordtype	eprints
spelling	iium-428692016-01-19T03:46:42Z http://irep.iium.edu.my/42869/ Spatial heterogeneity and spatial bias analyses in hedonic price models: some practical considerations Khalid, Haniza HA29 Theory and method of social science statistics HD1401 Agriculture A great number of contemporary studies are incorporating explicit consideration of spatial effects in the estimation of hedonic price functions. At the most basic level, interactive spatial regime models are employed to detect the presence of spatial heterogeneity in datasets. A full-scale spatial analysis would include determination and adjustments for spatial lag and spatial error dependences. However, there is still plenty of room for future research to help unravel the numerous modelling and practical issues associated with a comprehensive spatial examination, such as the specification of the spatial dependence structure or functional 'neighbourhoods'. Another important issue relates to the use of spatial multipliers to filter spatial bias particularly in models which use log-transformed variables. Estimation of a hedonic price function using Malaysian dataset of agricultural land sale values indicates spatial disaggregation and spatial dependence. However, diagnostic tests and actual estimation of spatial models do not always provide unambiguous conclusions while predicted errors do not vary all that much from those generated by simpler models. Despite the conceptual appeal of spatial analyses, the inefficiency attributable to spatial biases may not be large enough to cause critical errors in policy decisions. Bulletin of Geography. Socio-economic Series Nicolaus Copernicus University Lwowska 1 87-100 Toruń POLAND 2015-06 Article PeerReviewed application/pdf en http://irep.iium.edu.my/42869/1/BGSS_article.pdf Khalid, Haniza (2015) Spatial heterogeneity and spatial bias analyses in hedonic price models: some practical considerations. Bulletin of Geography Socio-economic Series, 28. pp. 113-129. ISSN 1732 - 4254 http://www.bulletinofgeography.umk.pl http://dx.doi.org/10.1515/bog-2015-0019
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HA29 Theory and method of social science statistics HD1401 Agriculture
spellingShingle	HA29 Theory and method of social science statistics HD1401 Agriculture Khalid, Haniza Spatial heterogeneity and spatial bias analyses in hedonic price models: some practical considerations
description	A great number of contemporary studies are incorporating explicit consideration of spatial effects in the estimation of hedonic price functions. At the most basic level, interactive spatial regime models are employed to detect the presence of spatial heterogeneity in datasets. A full-scale spatial analysis would include determination and adjustments for spatial lag and spatial error dependences. However, there is still plenty of room for future research to help unravel the numerous modelling and practical issues associated with a comprehensive spatial examination, such as the specification of the spatial dependence structure or functional 'neighbourhoods'. Another important issue relates to the use of spatial multipliers to filter spatial bias particularly in models which use log-transformed variables. Estimation of a hedonic price function using Malaysian dataset of agricultural land sale values indicates spatial disaggregation and spatial dependence. However, diagnostic tests and actual estimation of spatial models do not always provide unambiguous conclusions while predicted errors do not vary all that much from those generated by simpler models. Despite the conceptual appeal of spatial analyses, the inefficiency attributable to spatial biases may not be large enough to cause critical errors in policy decisions.
format	Article
author	Khalid, Haniza
author_facet	Khalid, Haniza
author_sort	Khalid, Haniza
title	Spatial heterogeneity and spatial bias analyses in hedonic price models: some practical considerations
title_short	Spatial heterogeneity and spatial bias analyses in hedonic price models: some practical considerations
title_full	Spatial heterogeneity and spatial bias analyses in hedonic price models: some practical considerations
title_fullStr	Spatial heterogeneity and spatial bias analyses in hedonic price models: some practical considerations
title_full_unstemmed	Spatial heterogeneity and spatial bias analyses in hedonic price models: some practical considerations
title_sort	spatial heterogeneity and spatial bias analyses in hedonic price models: some practical considerations
publisher	Bulletin of Geography. Socio-economic Series Nicolaus Copernicus University Lwowska 1 87-100 Toruń POLAND
publishDate	2015
url	http://irep.iium.edu.my/42869/ http://irep.iium.edu.my/42869/ http://irep.iium.edu.my/42869/ http://irep.iium.edu.my/42869/1/BGSS_article.pdf
first_indexed	2023-09-18T21:01:05Z
last_indexed	2023-09-18T21:01:05Z
_version_	1777410628402544640

Spatial heterogeneity and spatial bias analyses in hedonic price models: some practical considerations

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