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Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition

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... Court's results were further developed by other researchers, such as Lancaster (1966) and Rosen (1974). ...
... Hedonic utility theory was used by Rosen (1974) as a basis for developing HPM. He argued that the value of a good is an aggregate of characteristics that produce utility. ...
... Typically, these contributions can be measured using regression models Linear regression is the most often used model to express the mathematical formulations of HPM on residential properties (Crespo & Gret-Regamey, 2013;Lisi, 2021). As previously explained, the monetary value of property attributes is implicit, but through regression models, the monetary contribution of each property attribute to property prices can be identified by estimating the coefficient of these attributes (Lisi, 2021;Rosen, 1974). The value of a residential property is analyzed based on its independent variables, which are usually a collection of structural characteristics, accessibility, and environment. ...
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This study investigates the effects of location, structural, and environmental attributes on residential property values in South Tangerang City, Indonesia. The research employs the Hedonic Pricing Model (HPM), formulated mathematically using the multiple linear regression approach to determine the relative contribution given by these attributes. To achieve the objective, data were collected from information on residential properties in South Tangerang City which is accessible on various property buying and selling websites. The data collection was limited from July 2023 to January 2024. The results showed that some variables affected the value of residential properties, such as distances to KRL stations, public parks, top high schools, and the Central Business District (CBD), as well as building areas, land areas, and the number of rooms (bathrooms and bedrooms). However, other variables, such as distances to malls, hospitals, universities, and population density, had no partial effect on residential property values. If we look at the types of variables, the standardized coefficient beta test revealed that building areas were the most dominant variable affecting the property values in the region. This finding is different from other results, showing that property values are local. The influence of property attributes can vary across regions, so the impacts and relationships are different, too.
... There are a few indicators of revealed preference, like hedonic pricing, hedonic wage, and preventing behavior. Hedonic pricing is a wellknown function (Abidoye and Chan, 2017) articulated by Rosen (1974) and explained as the implicit prices of attributes that reveal the particular degree of related characteristics. The hedonic pricing function has been broadly applied in housing, scenes, and related features (Brown and Mendelsohn, 1984). ...
... To achieve the objectives of the study, the hedonic price model was developed by Rosen (1974), a revealed preference method for measuring demand or value. Hedonic values consider the implicit values of associated characteristics and are shown by finding the values of goods having different attributes. ...
... Therefore, in the hedonic price model, price is used as a dependent variable, and correspondingly the perceived attributes are used as independent variables. The partial derivatives of the model concerning the attributes having the implicit price represent the extra expenditures needed to acquire one item with an additional quantity of the attributes (Rosen, 1974). The hedonic price function finalizes the price of a product with the concerned attributes (Martínez-Garmendia, 2010). ...
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Pricing of a product is vigorous for marketing strategies, which has a significant impact on the buying behavior of customers and businesses. The objective of the study is to identify the influence of diverse quality attributes of mutton on retail prices from customers' perspectives when they purchase mutton. For this purpose, the primary data were collected using a pre-tested well-defined questionnaire from the consumers of four major metropolitan cities of Pakistan i.e., Karachi, Lahore, Faisalabad, and Islamabad. The revealed preference theory is applied in the present study. The study used the hedonic price model considering log-linear functional form to evaluate the influence of mutton attributes on the retail price. The outcomes of this study reveal that place of purchase, meat color, hygienic condition, aroma, meat cuts, texture, juiciness, fat contents, and abattoir`s stamp are key variables that have an affirmative and substantial effect on the price of mutton at the retail level. The results reveal that coefficients of hygienic condition, juiciness, and abattoir stamp have significant positive, whereas fat content has a negative effect on the price of mutton. The outcomes of this study will help the producers for product development with an appropriate mix of quality attributes of mutton. The implications of the outcomes have been conferred in the context of developing profitable strategies for the meat industry in an emerging country.
... The conventional hedonic approach is used as the basis for the analytical model. Numerous studies use hedonic price models based on Rosen's (1974) seminal work. The hedonic method expresses a set of characteristics constituting property value in functional form and systematically derives the implicit prices of amenities (Nickerson & Zhang, 2014). ...
... However, the hedonic price model was first adopted in Haas's (1922) master's thesis to estimate the value of farmland rather than housing (Colwell & Dilmore, 1999). Subsequently, Rosen (1974) systematized and formalized the hedonic price model for econometric modeling based on Alonso's (1964) bid-rent theory, which states that land prices and transport costs determine urban land-use patterns. Following Rosen (1974), several studies (e.g., Kim et al., 2005;Peiser, 1987;Snyder et al., 2007) comprehensively investigated the determinants of land prices using the hedonic price model. ...
... Subsequently, Rosen (1974) systematized and formalized the hedonic price model for econometric modeling based on Alonso's (1964) bid-rent theory, which states that land prices and transport costs determine urban land-use patterns. Following Rosen (1974), several studies (e.g., Kim et al., 2005;Peiser, 1987;Snyder et al., 2007) comprehensively investigated the determinants of land prices using the hedonic price model. Table 3.3 presents an overview of the independent variables, including the treatment and control variables. ...
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Urban vitality is a defining characteristic of successful cities and a cornerstone of sustainable development. However, sustaining this vitality has become an increasingly complex challenge as cities worldwide grapple with multifaceted urban issues. This dissertation explores how urban planning strategies can foster vibrant cities through three empirical studies that evaluate approaches at multiple scales. These studies offer insights relevant to both developed countries addressing urban decline and developing nations undergoing rapid urbanization, with a focus on South Korea, which serves as a representative case highlighting both the opportunities and challenges of contemporary urban planning. The first study evaluates the Yonsei-ro Transit Mall, a pedestrian-friendly street in Seoul. It leverages location-based big data and employs a controlled interrupted time series design to assess its impacts on pedestrian activity and commercial dynamics. The second study examines the economic effects of urban revitalization projects in Seongnam by applying a spatial hedonic model to analyze variations in land prices and the spatial effects of these initiatives. The third study investigates the spillover effects of public sector relocation policies on the socioeconomic vitality of adjacent primary cities. This analysis utilizes nighttime light data to determine whether these strategies foster intra-regional synergy or exacerbate competition. Collectively, this dissertation delivers a nuanced understanding of how multi-scale planning strategies can enhance urban vitality and provides practical implications for policymakers and urban planners.
... Mal veya hizmetin fiyatlandırılması mümkün olmayan özelliklerinin satışa konu üründen ayrılamaması, söz konusu özelliklerle ilgili bir pazar oluşturmanın mümkün olmaması gibi sebepler, mal veya hizmetin fiyatının belirlenmesinde hedonik fiyat yönteminin tercih edilme sebepleri arasında görülmektedir (Çiçek ve Hatırlı, 2015). Lancaster (1966) ve Rosen (1974) tarafından geliştirilen hedonik fiyat teorisinde talep, ürünün özelliklerine bağlıdır ve ürünün sahip olduğu her bir özelliğin fiyata olan katkısını hesaplamak mümkündür (Uyar ve Yayla, 2016). Lancaster (1966), malın heterojen yapısını dikkate alarak, mal veya hizmet talebinin onu oluşturan unsurlara bağlı olduğunu, dolayısıyla tüketicinin sağladığı faydanın malın özelliklerinden kaynaklandığını ifade etmektedir. ...
... Lancaster'e göre, tüketicinin sağladığı fayda ürünün her bir özelliğinin sağladığı fayda toplamından oluşmaktadır ve fiyat, söz konusu özelliklerin değeri aracılığıyla oluşturulmaktadır. Rosen (1974) ise, arz ve talep fonksiyonlarını heterojen ürünlerin sahip olduğu özelliklerin bir fonksiyonu olarak ele almakta ve hedonik fiyatı, malların özelliklerinin örtük fiyatı olarak tanımlamaktadır. Buna göre hedonik fiyat, farklılaştırılmış ürünlerin gözlemlenen fiyatlarından ve fiyatlarla ilişkili belirli özellik miktarlarından ekonomik birimlere yansımaktadır (Rosen, 1974;Kangallı Uyar, 2015). ...
... Rosen (1974) ise, arz ve talep fonksiyonlarını heterojen ürünlerin sahip olduğu özelliklerin bir fonksiyonu olarak ele almakta ve hedonik fiyatı, malların özelliklerinin örtük fiyatı olarak tanımlamaktadır. Buna göre hedonik fiyat, farklılaştırılmış ürünlerin gözlemlenen fiyatlarından ve fiyatlarla ilişkili belirli özellik miktarlarından ekonomik birimlere yansımaktadır (Rosen, 1974;Kangallı Uyar, 2015). Hedonik fiyat fonksiyonu; ( ) = ( 1 , 2 , … . ...
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Gayrimenkul türlerinden biri olan konutlar, bireylerin temel barınma ihtiyacını karşılamasının yanı sıra günümüzde yatırım aracı olarak da kullanılmaktadır. Bu bakımdan almak, satmak, inşa etmek ve vergilendirmek için konut değerinin belirlenmesi ve konut değerini etkileyen faktörlerin tespit edilmesi önem taşımaktadır. Konut değerini etkileyen faktörlerin belirlenmesine yönelik yapılan araştırmalarda konutun fiziksel ve yapısal özellikleriyle birlikte bulunduğu semt ya da muhitin de konut değerini etkilediğini ifade eden araştırmalar bulunmaktadır. Konutun taşınamaz olması, heterojen özelliklere sahip olması ve bulunduğu mahallin konutla birlikte satın alınıyor olması, şehirlerin imajı ve değerlendirilmesinde konutların belirleyici olabileceğini düşündürmektedir. Şehir markalarının değerlendirilmesine ilişkin ulusal ve uluslararası literatür incelendiğinde, şehir markalarının anketler ve çeşitli göstergeler aracılığıyla değerlendirildiği görülmektedir. Bu çalışmanın amacı, büyükşehirlerde konut fiyatlarını etkileyen faktörleri araştırmak, konutların bulundukları mahallelerin fiyatlar üzerindeki etkisini belirlemek ve şehirlerin marka gücüne ilişkin bir sıralama yapmaktır. Konut değerinden yola çıkılarak şehir marka gücünün belirlenmesinin amaçlandığı bu araştırma ilk olarak 30 büyükşehir için planlanmıştır. Ancak Diyarbakır, Erzurum, Hatay, Kahramanmaraş, Mardin, Şanlıurfa ve Van illerinde veri sayısının az olması nedeniyle 23 büyükşehir araştırma kapsamına alınmıştır. Araştırma kapsamındaki iller; Adana, Ankara, Antalya, Aydın, Balıkesir, Bursa, Denizli, Eskişehir, Gaziantep, İstanbul, İzmir, Kayseri, Kocaeli, Konya, Malatya, Manisa, Mersin, Muğla, Ordu, Sakarya, Samsun, Tekirdağ ve Trabzon’dur. İstanbul için analiz yapılırken il, Anadolu ve Avrupa Yakası olmak üzere iki bölüme ayrılmıştır. Araştırmada, büyükşehirlerdeki ilçeler ve mahalleler ayrı ayrı numaralandırılarak her bir mahalle ele alınmak istenmiştir. Ancak dikkate alınan mahallelerin her birinde bulunan veri sayısındaki dalgalanma ve söz konusu dalgalanmanın sapmayı artırması nedeniyle araştırmaya bir sınırlılık getirilmiştir. Buna göre yalnızca il merkezi konumundaki şehrin yerleşim alanı içinde bulunan ilçeler ve söz konusu ilçelerdeki mahalleler araştırma kapsamına alınmıştır. Araştırmanın amacı doğrultusunda 23 büyükşehrin şehir merkezinde yer alan mahallelerin 2018, 2019 ve 2020 yıllarına ait konut satış verileri dikkate alınmıştır. Konut satış verileri Zingat Gayrimenkul Bilgi Sistemleri A.Ş.'den temin edilmiştir. Konut özelliklerinin fiyat üzerindeki etkisini belirlemek için hedonik fiyat yöntemi kullanılmıştır. Ayrıca araştırmada panel veri analizi uygulanarak belirli bir zaman aralığında mahallelerin fiyatlar üzerindeki etkisi araştırılmıştır. Araştırmada büyükşehirlerdeki konut fiyatını etkileyen faktörleri belirleyebilmek amacıyla panel veri regresyon modelleri tahmin edilmiştir. Araştırmada kullanılan zaman boyutunun, kesitlerden küçük olması sebebiyle mikro panel yöntemleri tercih edilmiştir. Konut fiyatlarına etki eden faktörlerin belirlenmesi amacıyla gerçekleştirilen bu araştırmada değişkenlerin belirlenmesinde, Küçükkaplan ve Amca Aldı (2017) tarafından yapılan araştırmadan yararlanılmıştır. Araştırma kapsamında temin edilen veriler Microsoft Excel programında düzenlenmiş, konut satış fiyatı bağımlı değişken olmak üzere toplam 11 değişken ele alınmıştır. Söz konusu değişkenler; oda sayısı, salon sayısı, banyo sayısı, net alan, binadaki kat sayısı, bulunduğu kat, emlak tipi, bina yaşı, ısınma tipi ve kullanım durumudur. Araştırmada 23 büyükşehre ait gözlemler 2018, 2019 ve 2020 yılları için ayrı ayrı değerlendirilmiş ve mahallelerin konut fiyatlarına etkisi tespit edilmiştir. Her bir büyükşehirde konut fiyatları üzerinde en fazla etkiye sahip olan mahallelerdeki gözlemler aracılığıyla bir veri seti oluşturulmuş ve analiz yapılmıştır. Yapılan analizde, banyo sayısı, konutun kullanım alanı, konutun bulunduğu binadaki kat sayısı, konutun bulunduğu kat, emlak tipi ve bina yaşının fiyat üzerinde anlamlı etkiye sahip olduğu görülmüştür. Ayrıca konut değerlerine ilişkin yapılan analizlerden yola çıkılarak şehirler değerlendirilmiş ve şehirlerin marka gücü, konut değeri üzerinden belirlenmeye çalışılmıştır. Oluşan büyükşehirler sıralamasında İstanbul'un her iki yakasıyla, İzmir, Ankara ve Antalya’nın ilk sıralarda yer aldığı görülmektedir. Büyükşehirlerdeki konut fiyatlarından yararlanılarak yapılan şehir sıralamasının, şehirlerin marka gücünü belirlemede kullanılabileceği düşünülmektedir.
... One strand of the literature mainly focuses on the role played by consumer preferences and budget constraints (Rosen, 1979;Maclennan, 1982). A closely related approach is the one referred to as the hedonic price theory, according to which home prices respond to structural attributes such as the number of rooms and bathrooms, the lot size, and the quality of construction materials (Rosen, 1974;Baltagi, 2015). The locational theory regards houses as investment opportunities and, therefore, takes account of other determinants of home prices, such as proximity to parks and commercial centers, the availability of good public infrastructure, and other external amenity variables that could potentially lead to property appreciation in the long term (Alonso, 1964;Brueckner, 1987). ...
... One line of research primarily studies the influence of buyer preferences and income constraints (Rosen, 1979;Maclennan, 1982). For their part, the hedonic price approach underscores the relevance of the physical attributes of homes such as lot size, number of bedrooms and bathrooms, building materials, and other amenity variables like garages and gardens (Rosen, 1974;Baltagi, 2015). From the investors' standpoint, the locational theory considers the proximity of houses to good schools, recreation areas, and commercial centers as these factors tend to raise home market values over time (Alonso, 1964;Brueckner, 1987). ...
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This paper evaluates the impact of the perception of public insecurity on housing prices in Mexico. To that end, two dynamic panel data models involving 27 Mexican cities are assembled. The first model corresponds to the pre-pandemic period, while the second to the pandemic period. The specification of the model is based on a supply- and demand-side approach, whereas its estimation relies on the Arellano-Bond technique to address endogeneity problems. The evidence is consistent in showing that: 1) Housing prices fall as the perception of public insecurity rises, and 2) higher construction costs and income levels raise home prices. Moreover, the provision of public infrastructure and the real mortgage interest rate generate demand- and supply-side effects, so the net effect of these two variables on housing prices is negative before the pandemic and positive during the pandemic. Finally, housing prices involve a strong inertial component.
... The consumer theory suggests that it is not the good itself that creates utility, but its specific attributes (Lancaster, 1966). Hedonic price theory is the extension of consumer theory in the housing market, which believes that housings are made up of many different attributes and their prices depend on the utility they all bring to people (Rosen, 1974). Subsequently, the hedonic pricing model is widely performed to analyse the determinants of housing prices, including rental prices and sales prices (McCord et al., 2014;Li et al., 2019a, b;Duan et al., 2021;Tomal & Helbich, 2023). ...
... Second, the distance between housing and employment is directly related to commuting costs, which can have a significant impact on housing rental prices (Lin & Cheng, 2016). Third, amenity facilities around the house bring important utility to residents' everyday lives and can affect housing rental prices (Rosen, 1974;Li et al., 2019b). Fourth, built environment is related to the living utility and thus determine the housing rental prices. ...
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Given the complex urban internal spatial structure, the housing market in megacities is usually not a unified one but consists of multiple local submarkets. Compared to the housing purchase/sales market, rental housing market segmentation is more intricate due to specific rental demands and seasonal market fluctuations. This paper fills the literature gap by detecting general determinants and seasonal variations of rental prices, proposing a conceptual framework, and presenting an effective approach of rental submarkets identification. The global regression model confirmed the general effects of location, job accessibility, amenities and built environment on housing rental prices. A significant seasonal effect was observed in the rental market. The multiscale geographically weighted regression model suggested the spatially varying effects of various hedonic attributes. The local relationship between housing rents and hedonic attributes is determined greatly by the accessibility to the main function of the local area. Rental submarkets were identified based on the dominant factors influencing rents in local areas. The submarkets dominated by centre-location and the submarkets dominated by job accessibility cover most areas. There are few local premiums for amenities and no amenity-dominated submarkets. Finally, the improved approach to identifying urban housing submarkets and the optimisation of zoning housing policies were discussed.
... To estimate the left-hand-side values in (10) and (11), the variable that affects the wage rate of individuals must be known. The same cost of entertainment offerings affect both the hedonic wage and the hedonic price (Rosen (1974)). 7 Following Mincer (1974), the hedonic wage equation for econometric analysis would be, ...
... 7 Hedonic pricing models in the tradition of Rosen (1974) 8 Hedonic wage models in the tradition of Mincer (1974) are common in studies of hazardous working conditions (e.g., see Vitaliano (2019), Lavetti (2020). 9 In order to obtain the implicit price of non-traded good, such as a city's entertainment offerings, hedonic regression is the most commonly used approach. ...
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Using data from the 2018 American Community Survey for cities in North Carolina, this study examines the impact of the cost of entertainment goods and services on wages and rents in order to estimate the net implicit monetary value of a higher cost of living associated with city-based entertainment goods and services. A seemingly unrelated regression approach finds that although the cost of entertainment goods and services is capitalized into both wages and rents, individuals receive compensating differentials (i.e., larger increases in wages than in rents) for living in higher-cost cities offering more entertainment goods and services. Thus, our results suggest that individuals consider living in urban areas to be a disamenity. Our estimate of the average net marginal willingness to accept price for access to the entertainment offerings in an urban area is about $640 per year.
... The value recognised by consumers in the property market reflects not only the value of the property itself but also the desirability and accessibility of the surrounding environment, which significantly contributes to their living comfort. The hedonic price model (HPM) has been extensively used in city-scale mass property valuation (Lancaster, 1966;Rosen, 1974). It decomposes the value of a property to understand the economic impacts of variables under different attributes (e.g., physical, locational, and environmental). ...
... HPM is widely adopted in property valuation to quantify the hedonic value of different variables on property values (Rosen, 1974). The property value is an aggregation of a bundle of intrinsic and extrinsic hedonic characteristics, among which physical, locational and environmental variables are commonly involved. ...
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The vertical developments in cities reshape the urban form and structure, and the influences on human liveability can be reflected by the variations in property values. The hedonic price model (HPM) is commonly employed in city-scale property valuation to unravel the hedonic values of different influential variables. In vertically developed cities, it necessitates the exploration of the hedonic value in the vertical dimension (3D), which was previously under-researched due to limited 3D data and the complexity of processing techniques. Recent studies use eye-level street view images (SVIs) for valuation, but the 3D perspective is still missing. This study proposes a novel 3D property valuation method using SVIs acquired from two angles, eye-level (pitch 0°) and sky-view (pitch 90°, upwards), and machine learning method to complete the 3D perspective and provide explainability of 3D HPM. We also compared different valuation models – namely Ordinary Least Square (OLS), Geographically Weighted Regression (GWR), and Random Forest (RF) – using model performance metrics. Our main findings include: 1) 3D variables are statistically significant, and adding them improves the model performance (R2 from 0.580 to 0.636 in GWR); 2) In the sky-view angle, the proportion of sky has a positive correlation while the presence of buildings and trees are negatively correlated with property values; 3) RF outperforms OLS and GWR with the highest R2 (0.768) and the least RMSE (1669.60 yuan/m2), which demonstrates its robust explainability and applicability for valuation. This study enriches the property valuation literature on the significance of the 3D variables and provides references to guide fair taxation and equal land use policy in vertically developed cities.
... Finally, Etro and Stepanova (2019) found, using the repeat-sales method, that art markets are efficient, as return rates do not depend systematically on past prices. The hedonic pricing model (Rosen, 1974) estimates the implicit price (i.e. the hedonic price) or contribution of each of the attributes of a work of art (e.g. name of the artist, its size, Journal of Economics, Finance and Administrative Science etc.) within the total price. ...
... The information was obtained from the Blouin Art Sales Journal of Economics, Finance and Administrative Science database. We hypothesize, based on the hedonic pricing model originally proposed by Rosen (1974), that the prices of paintings are significantly related to a set of variables in the following form: ...
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Purpose-The literature on the potential benefits of art investing has yet to consider the effects of categorizing world regional art markets (e.g. Latin American art) by artistic styles or movements (e.g. Latin American surrealism, Latin American conceptual art, etc.). We propose that such categorization should be carried out and analyze the Latin American art market as an example. Design/methodology/approach-Eleven artistic style price indices within the Latin American art market (30,288 artworks created by 293 artists and sold at auction between 1970 and 2014) are estimated using hedonic regressions: Abstract-geometric, abstract-informal, conceptual, costumbrismo, cubism, figurative, muralism, landscape, surrealism, nineteenth century and avant-garde. We find that several variables that rely on the corresponding Latin American art movement index have a significant relationship with painting prices. Findings-There is significant variation in the financial performance of the various price indices for Latin American art styles: the conceptual (10.33% annual real return), abstract geometric (1.97%), cubism (0.97%) and costumbrismo (0.91%) movements overperformed a market that exhibited an aggregate negative cumulated real return of 0.9% during the sample period. The average correlation between each of the styles was only 0.12. The estimated price index for paintings sold at Christie's and Sotheby's clearly outperformed the index estimated for the other auction houses, and we also found that paintings created by Latin American women artists yielded higher returns. Practical implications-Our results have practical applications for investors, collectors, auction houses and policymakers. Originality/value-This is the first paper to highlight the need to decompose art price indices by artistic movements at the regional level.
... The factors influencing real estate purchase decisions can be broadly categorized into location, property features, financial considerations, lifestyle needs, accessibility, environmental aspects, and emotional and cultural influences. Location remains a dominant determinant, with proximity to workplaces, educational institutions, and amenities playing a pivotal role (Rosen, 1974). Additionally, property features such as the number of bedrooms, outdoor space, and energy efficiency significantly impact buyers' preferences, particularly for families seeking a home that aligns with their functional and aesthetic requirements (Kok et al., 2012).Financial considerations, including affordability, hidden costs, and http://jier.org ...
... Factor Location consistently emerges as one of the most critical factors influencing real estate purchase decisions. Proximity to workplaces, schools, and essential services like healthcare and shopping significantly impacts buyers' preferences (Rosen, 1974). Urban buyers prioritize areas with shorter commute times and better access to public transportation (Debrezion, Pels, & Rietveld, 2007). ...
Article
Real estate purchase decisions for personal use involve a complex interplay of rational, emotional, and cultural factors. This study examines the determinants shaping residential property choices, drawing on data from 134 respondents through a structured questionnaire. Key factors include location, property features, financial considerations, lifestyle needs, accessibility, environmental aspects, and emotional influences. The findings highlight location and construction needs as primary considerations, with proximity to essential amenities and outdoor spaces being highly valued. Financial affordability, hidden costs, and favorable mortgage options significantly impact decision-making, alongside lifestyle preferences such as walkability and access to public transportation. Environmental sustainability, including green spaces and favorable climates, has gained prominence, while technological infrastructure and smart home features enhance desirability. Emotional and cultural dimensions, such as community belongingness and aesthetic appeal, further underscore the multifaceted nature of real estate decisions. This study provides actionable insights for developers and policymakers to design sustainable, consumer-focused housing solutions.
... Sherwin Rosen (1974) building on Lancaster's work argues that a vector of objectively measured properties can describe each product and that the explicit price of a product consists of the implicit (hedonic) prices of the product's individual properties. Rosen points out that one must know the substitution and income effects when estimating hedonic prices. ...
... The immutable location of dwellings implies that the characteristics of their surroundings are an inseparable part of the dwellings valued by the market. Implicit in purchasing a dwelling is the right to consume local public goods (Rosen 1974). Hence, the hedonic price function of housing allows us to infer buyers' willingness to pay for the provision of public goods (Kuminoff and Pope 2014). ...
Book
The publication introduces the reader to the methods of hedonic prices and their application to estimating the economic effects of public goods for the purposes of planning and managing territorial development. The publication focuses on selected types of public infrastructure: civic amenities, transport infrastructure, green infrastructure and public spaces and provides practical guidance that shows step by step how the economic effects of implemented and planned public infrastructure development can be estimated from available data.
... The hedonic price method, pioneered by Rosen (1974), aims to estimate implicit prices for the individual "utility-bearing attributes or characteristics" of products. Typically, implicit prices are estimated from a regression of price on a vector of objective characteristics, using data that include a variety of different combinations of characteristics that correspond to different prices. ...
... Understanding the value of a fine wine bottle has been the aim of a great deal of research using the hedonic method. Based on the characteristics' separability of heterogeneous goods (Lancaster, 1966), the hedonic method developed by Rosen (1974) and Brown and Rosen (1982) has been broadly applied in the field of wine during the last three decades. In their recent literature review, Outreville and Le Fur (2020) list more than one hundred articles concerned. ...
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Wines are complex products. They historically have been identified by country and/or region of origin as well as by the producer or, in recent decades, marketed using grape varietal descriptions that gained 'generic brand status' (Spawton, 1999). Spawton (1990) supports a multi-faceted view of a wine brand. This brand hierarchy includes country of origin, region or appellation, variety of grape from which the wine is made, domain, bodega, or estate, and producer label. It may also include family heritage, production facility and equipment, winemaker, specific vineyard, soil type, climate, and even regional tourism characteristics and cuisine (Lockshin et al., 2000). Because of its agricultural nature, the wine industry has many brand-building sources to draw upon that go beyond primary product attributes. The proliferation of means of identifying wines leads to various product variants and types and a complex buying situation for consumers; this is a significant difference between wine and other consumer goods.
... The theory undergirding the hedonic price model, first outlined by Rosen (1974), is now well known; hence, it does not need to be repeated here. Following common notation, let Z represent a housing bundle with characteristics Z = z 1 , z 2 , … , z n . ...
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While a spacious single-family home may be the American Dream, this choice of living may contribute to global warming, residential segregation, and jurisdictional property tax disparities. Thus, there is interest in how the demand for spaciousness is changing over time. National surveys have revealed that COVID-19 shifted homebuyer preferences in favor of larger homes and lots. The issue addressed in this paper is whether these stated preferences have actually impacted the market value attached to these attributes in the housing market. We estimate hedonic price models using hundreds of thousands of single-family home sales from the ten largest metropolitan areas in Florida. Models include home and lot size interacted with years before and after COVID, along with time-varying neighborhood fixed effects and other home attributes. Results show large percentage increases in the marginal willingness to pay for interior and exterior space after COVID, continuing through 2023.
... Information technology allows a small number of talented individuals or firms to serve a large market and reap large rewards. In a series of papers, published in the second half of the 70s, Sattinger (1975Sattinger ( ), (1979 and Rosen (1974) and (1981) called such a magnification "superstar effect". Superstars are a small number of people (or sellers) earning enormous amount of money and dominating the activity they engage. ...
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The paper provides a simple model for AI-services market built by mixing elements of the superstar theory. By using such a framework, we discuss the role of scale related technical change in the advent of superstar artificial intelligent agents and main consequences of superstar effects on competition between AI-based systems.
... Precisely, we regress the logged price p i,d,s of dwelling i located in district d in federal state s on a set of hedonic characteristics (Rosen, 1974), as well as regime and contextual variables used for identification. Naturally, hedonic characteristics are mainly measured at the property-level while regime and contextual variables are measured on the state-or federal level. ...
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We develop a framework to holistically test for and monitor the impact of different types of events affecting a country's housing market, yet originating from housing-external sources. We classify events along three dimensions leading to testable hypotheses: prices versus quantities, supply versus demand, and immediate versus gradually evolving. These dimensions translate into guidance about which data type, statistical measure and testing strategy should be used. To perform such test suitable statistical models are needed which we implement as a hierarchical hedonic price model and a complementary count model. These models are amended by regime and contextual variables as suggested by our classification strategy. We apply this framework to the Austrian real estate market together with three disruptive events triggered by the COVID-19 pandemic, a policy tightening mortgage lending standards, as well as the cost-of-living crisis that came along with increased financing costs. The tests yield the expected results and, by that, some housing market puzzles are resolved. Deviating from the prior classification exercise means that some developments would have been undetected. Further, adopting our framework consistently when performing empirical research on residential real estate would lead to better comparable research results and, by that, would allow researchers to draw meta-conclusions from the bulk of studies available across time and space.
... Se utiliza inferencia estadística y regresión múltiple de acuerdo a la metodología originalmente propuesta por Rosen (1974) y posteriormente incorporada ampliamente en la Ingeniería Avaluatoria (Dantas, 1998;Peruzzo Trivelloni, 1998;Michael, 2004;Peruzzo Trivelloni, 2005;Oliveira et al, 2016;Fontoura Jr. et al, 2018;Duarte et al., 2022; Peruzzo Trivelloni et al, 2023a y 2023b; entre otros). Se realiza un primer análisis de la influencia de las variables independientes consideradas en el precio de los inmuebles. ...
Article
Este trabajo analiza los factores que influyen en el valor de los bienes inmuebles urbanos para el barrio Malvín Sur, Montevideo, Uruguay, junto al Río de la Plata. A través del análisis de una muestra de compraventas de bienes inmuebles en el área de estudio, con la complementación de datos originarios de la Dirección Nacional de Catastro como categoría, estado de conservación, edad, altura máx, área del predio y área edificada; y datos de distancias a avenidas principales y rambla, se utilizan herramientas estadísticas avanzadas como regresión espacial, regresión múltiple y geoestadística para el análisis detallado de su dinámica socioeconómica. Trás el análisis se transita de un modelo inicial poco explicativo a un modelo final con un poder explicativo del 88%, lo que indica una capacidad robusta para predecir los precios basados en las características estudiadas, persistiendo únicamente un 12% de variabilidad inexplicada. El análisis de residuos y la depuración de datos ayudan a mejorar la precisión del modelo. Especialmente, se observó que la ubicación es crucial: áreas cerca de la rambla y avenidas, tienen valores más altos debido a vistas atractivas, buena conectividad y servicios cercanos. Por el contrario, zonas cercanas a asentamientos irregulares o sin acceso directo a vías principales tienden a tener valores más bajos. En resumen, la investigación subraya la importancia de la ubicación geográfica, la infraestructura urbana y la proximidad a servicios como factores clave en la valorización inmobiliaria de Malvín Sur.
... Hedonic pricing models (HPMs) date back to 1939 when Andrew Court succeeded in estimating an index for the automotive market using this model [13]. Technically, the theory behind HPMs originates from Lancaster's renowned consumer theory and Rosen's theoretical model [14]. Rosen stood out for being the first to apply HPMs within standard economic theory, incorporating properties considered heterogeneous in nature. ...
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Understanding the determinants of housing price movements is an ongoing subject of debate. Estimating these determinants becomes a valuable tool for predicting price trends and mitigating the risks of market volatility. This article presents a systematic review analyzing studies that compare various machine learning (ML) tools with hedonic regression, aiming to assess whether real estate price predictions based on mathematical techniques and artificial intelligence enhance the accuracy of hedonic price models used for valuing residential properties. ML models (neural networks, decision trees, random forests, among others) provide high predictive capacity and greater explanatory power due to the better fit of their statistical measures. However, hedonic regression models, while less precise, are more robust, as they can identify the housing attributes that most influence price levels. These attributes include the property’s location, its internal features, and the distance from the property to city centers.
... Addressing this crucial need, our study embarks on an exploration to decipher the determinants of WRs pricing in Chile, placing a particular emphasis on the role of climatic and socioeconomic variables. Utilizing a comprehensive dataset encompassing 10,345 WRs transactions, we implemented a hedonic pricing model, rooted in quantile regression analysis [14]. This model allowed us to scrutinize how variables such as maximum temperature, precipitation, and regional GDP intricately weave into the fabric of determinants of price dynamics within the WRs market. ...
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This study investigates the water rights markets across various regions of Chile, encompassing a wide range of geographic and climatic conditions. Utilizing 10,345 transaction records from 1990 to 2014 provided by the national authority for the regulation of utilities, this dataset covers data from 12 of the 15 regions of Chile at the time and 26 basins across the country. The comprehensive nature of this study, which has not been previously achieved with such a reliable and extensive dataset, aims to analyze price determinants in these markets. This novel approach allows us to understand the global performance of water markets. Key considerations include climatic variables such as annual precipitation and maximum temperatures, regional GDP per capita, and factors like mining industrialization level, transaction size, rurality index, and the existence of scarcity decrees. Employing a hedonic model, particularly a quantile model with robust errors, the research assesses the impact of these variables on observed prices. The findings reveal market heterogeneity with variables such as precipitation, geopolitical, and demographic characteristics, industrialization, and transaction volume significantly influence water rights prices. Interestingly, water scarcity decrees, intended to minimize drought damages, paradoxically resulted in lower water right prices. The study also highlights a predominant corporate presence and sector-specific purchasing geographic patterns, particularly in the agricultural and mining sectors. These insights are critical for ecosystem services valuation and for informing sustainable water resource management in the face of climate change and natural resource governance challenges.
... Real estate economics provides the conceptual basis for understanding market specifics. The spatial equilibrium theory [1] and the model of monopolistic competition in the real estate market [2] form the basis for analyzing market processes. These theories emphasize the need for agents to deeply understand the spatial and economic factors affecting real estate value. ...
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This study aims to develop a comprehensive framework for implementing modern educational programs in real estate agencies' corporate training. The research employs a multidisciplinary approach, integrating theories from real estate economics, human capital theory, organizational behavior, and andragogy. Methods include systematic literature review, mathematical modeling of competencies, and application of change management theories. Key results demonstrate the effectiveness of adaptive learning systems based on machine learning algorithms and cognitive modeling, integrated with immersive technologies and microlearning. The study proposes a multi-level competency taxonomy and a strategy for program implementation, considering organizational, technological, and human factors. Conclusions emphasize the transformative nature of modern educational programs in real estate agencies, highlighting the need for continuous adaptation. This research contributes to the field by providing a novel, integrated approach to corporate learning in the real estate sector, bridging the gap between educational technology advancements and industry-specific requirements.
... The hedonic model is typically used to estimate land and real estate values by considering structural, locational, and neighborhood attributes (Rosen, 1974;Sheppard, 1999). The classic hedonic model estimated using the ordinary least squares (OLS) approach is formulated as follows: ...
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Although the “15-min city” concept has gained currency in urban planning, limited attention has been paid to the comprehensive effects of multiple accessible amenities on urban outcomes. This study tried to provide insight into outcomes of the 15-min city by examining the combinational effects of living service amenities on housing prices in Shanghai, China. An enhanced two-step floating catchment area (E2SFCA) method was employed to measure the supply–demand relationship between urban amenities and residences, and a gradient boosting regression tree (GBRT) was applied to identify the combinational effects of urban amenities on housing prices. E2SFCA showed polycentric patterns in the supply–demand relationship between population and amenities, distinguished from traditional measures like distance and density. According to the LightGBM model, we find that accessibility of commerce amenities shows strong positive correlation with housing price, while accessibility of other amenities show nonlinear association with housing price. Further analysis identify the combinational effects of amenities on housing price. Three types of combinational effects have been identified, including positive interaction, incompatible interaction and conditional interaction. For example, there is positive interaction between sports and education amenity that contributed to higher housing prices; culture and education amenities were incompatible to reduce housing prices; The combinational effects between healthcare amenities and commerce amenities on housing prices were only found when accessibility of commerce amenities is low. These findings are helpful in understanding the nexus relationship between urban amenities and housing prices under the concept of the 15-min city.
... Rosen's hedonic theory (Rosen, 1974) posits that dwellings are composite products, with each component possessing an implicit or hedonic value that can be uncovered. ...
Article
Purpose The purpose of this article is to test whether floor plan image segmentation can be used to improve automated valuation model (AVM) accuracy and whether image segmentation provides the opportunity to assess single aspects of property floor plans. Design/methodology/approach Using a dataset comprising floor plans of 5,498 apartments sold in Oslo, we estimate balcony sizes by image-segmenting the rooms in floor plans using our machine learning model FloorPlanNet and extracting the size of the balcony from the segmentation. We also extract balcony size using text recognition. Then we utilize two models for AVM estimation – hedonic regression (linear OLS) and the non-linear XGBoost model – before measuring feature importance using SHAP. Findings Our experiments show that including balcony size as a feature in AVMs enhances model performance. We also find that balcony size has a positive but diminishing impact on property price. Research limitations/implications Demonstrating that image segmentation can be used for valuation in AVMs opens up the possibility to value numerous other aspects of dwelling floor plans. Practical implications The use of floor plans in AVMs can provide a more objective valuation of single apartment floor plan aspects, giving architects and developers better insights into how homes should be designed. Originality/value To our knowledge, this is the first attempt to extract features for use in AVMs from floor plans.
... This limitation restricts their ability to capture complex relationships where features influence each other in non-trivial ways. For example, Rosen [26] introduced the concept of the hedonic price function, which breaks down property values based on distinct characteristics, but it does not fully account for multivariate dependencies, making it less effective in dynamic real estate markets where such interactions are significant. More recent research has leveraged machine learning techniques such as decision trees [27,28,29,30,31], random forests [32,33,34,35], and gradient boosting methods [36,37,38,39] to improve house price prediction accuracy. ...
Article
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This research examines the key factors influencing house prices, focusing on how size, condition, and structural features contribute to property valuation. Using a dataset from Washington State, USA, covering the year 2014 with over 4,600 entries, a multivariate analysis was conducted with a Linear Regression model to assess the relationships between crucial features such as square footage, number of bedrooms, bathrooms, floors, and additional structural elements like garage presence and yard size. The analysis revealed that square footage and bathrooms exhibit the strongest positive correlations with house prices (both with correlation values of 0.76, statistically significant at p < 0.05), indicating their substantial impact on property valuation. In contrast, factors like condition and view demonstrated weaker correlations, suggesting a more limited influence. The Linear Regression model explained 75% of the variation in house prices (R2 = 0.75), with validation conducted using a holdout test set to ensure generalizability. While the model effectively highlights key price determinants, its limitations in handling non-linear relationships and sensitivity to outliers were addressed through data transformation and outlier removal. Compared to prior studies, this research reinforces established findings on square footage and bathrooms while providing new insights into the comparatively lower impact of property condition. Future work could explore advanced predictive models, such as non-linear regression and machine learning techniques, to better capture complex relationships and improve forecasting accuracy. These findings offer valuable insights for buyers, sellers, and industry professionals, emphasizing the importance of a data-driven approach to understanding house price dynamics.
... Pesticides and fertilizers have undergone changes in input quality over the study period. To measure input price and quantity in constant-efficiency units (Jorgenson & Griliches (1967) we construct quality-adjusted price indices for fertilizers and pesticides using hedonic methods (Fernandez-Cornejo et al., 2014;Rosen, 1974). Kellogg et al. (2002) have compiled data on characteristics that capture differences in pesticide quality. ...
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We introduce new methods and data sources to generate comprehensive state-level estimates of inputs, outputs, and total factor productivity for each of the 48 contiguous US states from 1960 to 2015. Results show that total factor productivity is the primary driver of farm output growth during the study period. However, the average annual productivity growth rates exhibit significant variation among states, ranging from 0.23% (New Mexico) to 1.95% (Ohio). While the average annual productivity growth rate has decelerated for most states over the past two decades, our test results do not indicate a consistent productivity slowdown across 10 production regions. JEL Codes: O13, O47
... The hedonic method in this context is based on the premise that land prices include people"s WTP for the environment. By using this method, we can assess how the externalities of wind turbines, such as noise and landscape effects, affect land prices (Rosen, 1974) in England and Wales. However, in the Japanese context, using the hedonic method of analysis is difficult because there are only a few cases where wind power generation facilities have been introduced near housing, and there is a very small amount of data on housing transactions near wind power generation facilities. ...
... This study rests on Rosen's (1974) hedonic framework, whose general formulation is as follows: ...
Article
Since the beginning of the 21 st century, over 100 major landslides have been reported worldwide, which resulted in both human casualties and massive damages to property. While the academic and technical literature on landslide hazard risk assessment is quite abundant, relatively few studies address the issue of the impact of landslide exposure on property values. In this research, we look at the impact that public intervention aimed at compensating homeowners affected by landslide hazard constraint zones had on residential values in La Baie, an arrondissement of the City of Saguenay (formerly Chicoutimi), in the province of Quebec, Canada. The area was most affected by the Saguenay flood that hit the region on July 19 and 20, 1996 and which was followed by a series of landslides. A difference-in-differences (DiD) spatial hedonic price model is estimated using a representative sample of 813 single-family sales transacted in La Baie between 2009 and 2016. Findings suggest that, caeteris paribus , and nearly two decades after the 1996 events, the compensation scheme implemented at the local level in December 2012 did not manage to completely offset the disadvantages of building constraints on high-risk sites induced by the new regulations and translated into a statistically significant price discount of 3.4% for affected properties as opposed to unaffected ones. They also suggest that a panoramic view on the Saguenay fjord adds some 8.6% to a property’s value.
... The standard hedonic pricing method was developed based on the idea that consumers purchase differentiated goods because of the bundle of characteristics in that product (Lancaster, 1966). The equilibrium price therefore reflects the implicit price of each characteristic (Rosen, 1974). This hedonic pricing method is frequently applied to a variety of environmental goods and services (Holmes, 1998;Harrison Jr and Rubinfeld, 1978;Nicholls and Crompton, 2005;Asabere and Huffman, 2009). ...
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House prices capture the value households place on environmental attributes and amenities. Access to an unlimited water right for irrigating lawns in an arid region is a prized environmental amenity. The distribution of this amenity varies across space, and often houses with these water rights are located in neighborhoods that differ substantially from other neighborhoods. This study aims to disentangle these neighborhood differences to identify the value that households place on unmetered water rights for lawn irrigation. Identification relies on a regression discontinuity design exploiting the variation in unmetered water access that occurs based on historical land use and geographic features. By examining houses on the border of the water rights zones, the analysis isolates houses that only differ by their access to unmetered irrigation water, thereby eliminating potentially correlated variation with this access, such as differences in socioeconomic attributes, local tax rates, school quality, and environmental amenities. The findings indicate that households are willing to pay a premium of 2% for access to unmetered irrigation water. This premium is not driven by factors such as lawn greenness or the curb appeal from more heavily irrigated landscapes.
... 3. The Hedonic Pricing Method: This method assesses the value of environmental amenities by examining how they affect market prices, such as property values. The value of clean air, for example, can be obtained by making the difference between property prices of polluted and nonpolluted areas (Rosen, 1974). ...
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The integration of sustainability in economics is essential for achieving long-term economic stability and environmental preservation. As climate change, resource depletion, and social inequities intensify, adopting sustainable practices within economic frameworks is crucial. This article delves into the relationship between sustainability and economics, highlighting the impact of non-financial factors, such as sustainability reports, on financial outcomes like stock prices. By analysing the Romanian BET index, we examine the correlation between sustainability practices and market value. Our findings indicate that the visibility of sustainability reports on company websites does not significantly affect stock prices. However, the general upward trend in stock quotations suggests that other factors might play a more substantial role. This study underscores the importance of regulatory frameworks in promoting transparent sustainability practices. Future research will expand this analysis to global markets, aiming to develop a comprehensive company score that incorporates various financial and non-financial factors.
Article
This paper identifies missing markets for the sugar content of sugar‐sweetened beverages (SSBs) as a novel foundation of soft drink taxation. If the social marginal value of sugar content is negative, then missing price signals imply an inefficiently high sugar content. Efficiency is restored with a tax on the sugar content per unit of the SSB, augmented by a subsidy on the SSB. In an empirical calibration to the UK, the optimal SSB subsidy is small, whereas the optimal sugar content tax is £0.38 per liter and, thus, one and a half to two times larger than the tax rates implemented by the UK's soft drink levy.
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This paper estimates the impact of climate change on agriculture in Brazil using the Ricardian approach. Our findings indicate that the net impact of climate change on Brazilian agriculture is negative, although there are varying regional consequences. March and September temperature and precipitation effects are positive, but are outweighed by the more negative December and June effects. The Center-West region is most negatively affected, whereas the South benefits mildly from warming.
Article
Farmland prices have been surging worldwide; yet little is known about the particular strong surges in the upper quantiles of price distribution. We investigate by quantile how the composition of the farmland sales and agents’ valuation of land characteristics contribute to these price developments. Using farmland transactions from Brandenburg, Germany, we decompose the price surges between 2008–09 and 2017–18 by combining unconditional quantile regressions with propensity score reweighting. Our results show an increased valuation of land characteristics, e.g. soil quality, and their responsibility for about 25% of the price surges in the upper (>75%) quantiles of price distribution.
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There is public concern about the degree to which rising farmland rental rates are driven by the perceived market influence of non-agricultural actors. We conduct a structural estimation to analyse the potential bargaining power of different types of actors in the farmland market. It allows us to infer their latent reservation utilities by exploiting equilibrium conditions, derived from a stochastic ultimatum game. Reservation utilities reflect outside options in negotiations, as they are determinants of bargaining power. We conduct economic experiments in the rental market. Our findings show that farmers and local actors have more bargaining power than non-farmers and absentee actors, respectively.
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This article investigates whether homebuyers display a form of cognitive bias called left digit bias when it comes to future property taxes. Using a regression discontinuity method, and under both hedonic and repeat‐sales estimations, homes with property tax obligations that are just under a 1000thresholdareshowntosellfor0.51000 threshold are shown to sell for 0.5% more than other equivalent homes. This type of cognitive error results in an average overpayment of 1650. Results are larger for single‐family homes. Neither market conditions nor property tax growth rates change the left‐digit bias estimates. There is also evidence of additional left‐digit bias with respect to the assessed value.
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The nomenclatures ‘environmental economics’ and ‘ecological economics’ are frequently utilised interchangeably in academic and policy spheres. While purportedly complementary in certain aspects, these disciplines diverge significantly in various fundamental principles. Environmental economics boasts a lengthy lineage, with its conceptual foundations traceable to pre-classical economic thought. On the other hand, ecological economics emerged more recently, particularly in the post-1980s, articulating ecological and energy-related concepts beyond the purview of neoclassical-based environmental economics. Although the distinctions between these two fields of inquiry in environment–human interactions have been well established in global academia, such delineations remain inadequately articulated within the Indian context. Consequently, the development of environmental curricula in economics departments predominantly revolves around environmental economics, often lacking critical inputs from ecological economics. In some instances, curricula incorporate an amalgamation of theories, concepts, principles and methodologies from both fields, leading to conceptual ambiguity. Furthermore, the lack of awareness among educators and students regarding these distinctions results in the treatment of both fields as synonymous, thereby limiting exposure to critical aspects of the alternative discipline. This article presents a systematic review of the historical evolution of neoclassical-based environmental economics and argues that ecological economics emerged as a ‘reaction’ to reorient the former with relevant inputs from domains such as political ecology and the laws of thermodynamics. The analysis aims to clarify the demarcations between these two significant branches of economic thought in the context of environmental studies.
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As the popularity of geographical indication (GI) grows in developing countries, the coexistence of GI self‐claims and certification has become widespread. This study focusses on the Chinese rice market and explores the market performance of GI self‐claims and certification. The findings indicate that while GI self‐claims can generate price premiums, these are lower than those generated by GI certification. In the mid‐to‐high‐end rice market, GI self‐claims barely succeed to generate any price premium, whereas GI certification maintains its competitiveness. Notably, there is heterogeneity in the price premiums of different types of GI self‐claims and certification. On the one hand, only indirect self‐claims, which utilise origin information denoted by a GI label, can generate a price premium. On the other hand, GI certification promoted in earlier years or with more stringent certification standards generates higher price premiums. There is no clear evidence suggesting that a higher number of GI certificates corresponds to higher price premiums.
Article
The study analyzed the impact of the COVID-19 pandemic, inflation, and interest rates on the Home Price Index (HPI) in BRICS member countries (Brazil, Russia, India, China, and South Africa), using data from Q1 2016 to Q2 2023. Secondary data used in this study were obtained from official sources, including the International Monetary Fund (IMF), the Central Bureau of Statistics (BPS), and the Central Banks of BRICS countries. The analysis technique in this study uses panel data regression, namely the Fixed Effect Model (FEM). The results of the analysis of the data panel show that COVID-19 has had a significant positive impact on the HPI, indicating that the pandemic has affected the housing market in the BRICS countries. Interest rates have a negative and significant impact on the HPI, suggesting that tighter monetary policy is likely to suppress rising house prices. Finally, inflation has a positive and significant impact on the HPI, illustrating a positive relationship between inflation rates and house prices in BRICS countries. These findings provide insights for policymakers and stakeholders in BRICS countries in managing housing markets and addressing challenges posed by unforeseen events such as the COVID-19 pandemic. In addition, these results also have the potential to support the development of more effective economic policies for the BRICS.
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Europe faces a situation where housing represents the main savings for most of the population, while the majority of homeowners are seniors aged over 65. The desire to supplement pensions has led to a growing interest in generating income from these savings, with bare ownership emerging as a notable option. This solution makes it possible to transfer the ownership of the home while maintaining usufruct rights for the duration of the owner’s lifetime. This paper examines the status of bare ownership in the city of Rome by web scraping the house offers published on web portals and segmenting those offered as bare ownership. Machine learning analysis based on neural networks and binary logit regression allows for the observation of the particular behavior of the housing supply in bare ownership; it shows the different intrinsic and extrinsic characteristics that determine this Real Estate segment. The findings highlight the development of a growing market strongly influenced by the location of assets. These findings provide valuable insights for both investors and urban planners regarding changes in urban dynamics processes.
Article
Rising liability insurance premiums have negatively impacted log trucking businesses in Mississippi and across the southeastern United States. A statewide mixed-mode log trucking business owner survey was used to study factors impacting liability insurance for Mississippi timber transportation. A hedonic regression model was developed to identify operational characteristics that significantly influenced insurance premiums. Marginal implicit prices were calculated to reveal an average per unit monetary contribution of each significant attribute while holding the others constant. The 3-year inflation-adjusted average for Mississippi companies was 12,466pertruckperyear,withaminimumvalueof12,466 per truck per year, with a minimum value of 4,000 per truck per year and a maximum of 24,404pertruckperyear(allvaluesinUS24,404 per truck per year (all values in US). On average, each year of owner experience provided a mean insurance premium discount of 72.42.Eachadditional1,000miles(1600km)traveledbylogtrucksatthemeaninsurancepremiumwasvaluedat72.42. Each additional 1,000 miles (1600 km) traveled by log trucks at the mean insurance premium was valued at 50.00; each safety violation was valued at 3,322;andanoverweightviolationwasvaluedat3,322; and an overweight violation was valued at 1,311. Implementation of safety practices and safety equipment did not significantly impact insurance premiums. Companies were not directly rewarded for using safety equipment and safety practices but were penalized through increased policy rates when cited for safety and overweight violations. Investing in safety practices (e.g., regular truck inspections, truck driver training, repair and maintenance programs, etc.) and safety equipment (truck scales, cameras, truck tracking, telematics, etc.) would reduce roadside inspection citations and crashes, which contribute to rising liability insurance premiums.
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American business has recently been under fire, charged with inflated pricing and an inability to compete in the international marketplace. However, the evidence presented in this volume shows that the business community has been unfairly maligned—official measures of inflation and the standard of living have failed to account for progress in the quality of business equipment and consumer goods. Businesses have actually achieved higher productivity at lower prices, and new goods are lighter, faster, more energy efficient, and more reliable than their predecessors. Robert J. Gordon has written the first full-scale work to treat the extent of quality changes over the entire range of durable goods, from autos to aircraft, computers to compressors, from televisions to tractors. He combines and extends existing methods of measurement, drawing data from industry sources, Consumer Reports, and the venerable Sears catalog. Beyond his important finding that the American economy is more sound than officially recognized, Gordon provides a wealth of anecdotes tracing the postwar history of technological progress. Bolstering his argument that improved quality must be accurately measured, Gordon notes, for example, that today's mid-range personal computers outperform the multimillion-dollar mainframes of the 1970s. This remarkable book will be essential reading for economists and those in the business community.
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Problems of optimization are pervasive in the modern world, appearing in science, social science, engineering, and business. Recent developments in optimization theory, especially those in mathematical programming and control theory, have therefore had many important areas of application and promise to have even wider usage in the future. This book is intended as a self-contained introduction to and survey of static and dynamic optimization techniques and their application to economic theory. It is distinctive in covering both programming and control theory. While book-length studies exist for each topic covered here, it was felt that a book covering all these topics would be useful in showing their important interrelationships and the logic of their development. Because each chapter could have been a book in its own right, it was necessary to be selective. The emphasis is on presenting as clearly as possible the problem to be treated, and the best method of attack to enable the reader to use the techniques in solving problems. Space considerations precluded inclusion of some rigorous proofs, detailed refinements and extensions, and special cases; however, they are indirectly covered in the footnotes, problems, appendices, and bibliographies. While some problems are exercises in manipulating techniques, most are teaching or research problems, suggesting new ideas and offering a challenge to the reader. Most chapters contain a bibliography, and the most important references are indicated in the first footnote of each chapter. The most important equations are numbered in bold face type.
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This paper considers the hypothesis that commodities purchased on the market by consumers are inputs into the production of goods within the household. Its implications for the family of consumer demand functions whose arguments are real income and relative prices are drawn and compared with those of the hypothesis of additive separability. The paper closes with some examples of differences in commodity demand elasticities which are qualitatively consistent with the household production hypothesis and some comments upon how the latter might be utilized in empirical work.
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The article attempts to develop a general theory of the allocation of time in non-work activities. It sets out a basic theoretical analysis of choice that includes the cost of time on the same footing as the cost of market goods and treats various empirical implications of the theory. These include a new approach to changes in hours of work and leisure, the full integration of so-called productive consumption into economic analysis, a new analysis of the effect of income on the quantity and quality of commodities consumed, some suggestions on the measurement of productivity, an economic analysis of queues and a few others as well. The integration of production and consumption is at odds with the tendency for economists to separate them sharply, production occurring in firms and consumption in households. It should be pointed out, however, that in recent years economists increasingly recognize that a household is truly a small factory. It combines capital goods, raw materials and labor to clean, feed, procreate and otherwise produce useful commodities.
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Cover-title. Thesis (PH. D.)--Columbia University, 1942. "Reprinted from Econometrica ... vol. 9, no. 2, April ... nos. 3 & 4, July-October, 1941." Vita: p. [3] of cover. Microfilm. Filmed;
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The research agendas of psychologists and economists now have several overlaps, with behavioural economics providing theoretical and experimental study of the relationship between behaviour and choice, and hedonic psychology discussing appropriate measures of outcomes of choice in terms of overall utility or life satisfaction. Here we model the relationship between values (understood as principles guiding behaviour), choices and their final outcomes in terms of life satisfaction, and use data from the BHPS to assess whether our ideas on what is important in life (individual values) are broadly connected to what we experience as important in our lives (life satisfaction).
Makes and Depreciation in the U.S. Passenger Car Market
  • Ohta
  • Makoto
  • Griliches
  • Zvi
Ohta, Makoto, and Griliches, Zvi. Makes and Depreciation in the U.S. Passenger Car Market. Mimeographed. Harvard Univ., 1972
hfathematical Optimization and Economic Theory. Englewood Cliffs
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Intriligator, Michael D. hfathematical Optimization and Economic Theory. Englewood Cliffs, N.J. : Prentice-Hall, 1971