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Hedonic Price Method for Housing

Author

Listed:
  • Jeyhun Abbasov

    (Senior Specialist of Statistics Department of the Central Bank of the Republic of Azerbaijan.)

Abstract

Hedonic goods are analyzed by “Hedonic price model†and it makes possible to compute the adequacy of price indices in the commodity markets. Hedonic goods involve immovable properties, such as apartment, computers, cars, home things, mobile phones etc. The features of these goods form their prices. Marginal effects of features of goods in forming the prices of hedonic goods can be determined by this approach. In other words, the parameters obtained from estimating the hedonic price model describes the marginal value of characteristics of goods. This method creates wide opportunities for analyzing the quality changes on behavior and pleasure of people.

Suggested Citation

  • Jeyhun Abbasov, 2014. "Hedonic Price Method for Housing," International Journal of Business and Social Research, LAR Center Press, vol. 4(8), pages 8-16, August.
    • Handle: RePEc:lrc:larijb:v:4:y:2014:i:8:p:8-16
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    File URL: http://thejournalofbusiness.org/index.php/site/article/view/576/454
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    References listed on IDEAS

    as
    1. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    2. Bartik, Timothy J, 1987. "The Estimation of Demand Parameters in Hedonic Price Models," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 81-88, February.
    3. Jack Triplett, 2004. "Handbook on Hedonic Indexes and Quality Adjustments in Price Indexes: Special Application to Information Technology Products," OECD Science, Technology and Industry Working Papers 2004/9, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

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