Nonparametric estimation of a hedonic price function

Christopher Parmeter, Daniel J. Henderson, Subal C. Kumbhakar

Research output: Contribution to journalArticle

41 Citations (Scopus)

Abstract

Rosen's (1974) theory of hedonic prices is implemented econometrically using recently developed nonparametric techniques to examine the influence of qualitative factors on the price of a house. Our ability to smooth categorical variables leads to greater generalization in the valuation process and provides a canvas for interactions between categorical and continuous variables that is difficult to exploit in parametric and semiparametric models. This is illustrated with a replication of a previously used partially linear model specification.

Original languageEnglish (US)
Pages (from-to)695-699
Number of pages5
JournalJournal of Applied Econometrics
Volume22
Issue number3
DOIs
StatePublished - Apr 1 2007
Externally publishedYes

Fingerprint

linear model
ability
interaction
Hedonic price function
Factors
Interaction
Nonparametric estimation
Replication
Model specification
Hedonic prices
Semiparametric model
Parametric model
Categorical variables
Partially linear model

ASJC Scopus subject areas

  • Economics and Econometrics
  • Social Sciences (miscellaneous)

Cite this

Nonparametric estimation of a hedonic price function. / Parmeter, Christopher; Henderson, Daniel J.; Kumbhakar, Subal C.

In: Journal of Applied Econometrics, Vol. 22, No. 3, 01.04.2007, p. 695-699.

Research output: Contribution to journalArticle

Parmeter, Christopher ; Henderson, Daniel J. ; Kumbhakar, Subal C. / Nonparametric estimation of a hedonic price function. In: Journal of Applied Econometrics. 2007 ; Vol. 22, No. 3. pp. 695-699.
@article{335ebffa831644b69a5249c99a61b60c,
title = "Nonparametric estimation of a hedonic price function",
abstract = "Rosen's (1974) theory of hedonic prices is implemented econometrically using recently developed nonparametric techniques to examine the influence of qualitative factors on the price of a house. Our ability to smooth categorical variables leads to greater generalization in the valuation process and provides a canvas for interactions between categorical and continuous variables that is difficult to exploit in parametric and semiparametric models. This is illustrated with a replication of a previously used partially linear model specification.",
author = "Christopher Parmeter and Henderson, {Daniel J.} and Kumbhakar, {Subal C.}",
year = "2007",
month = "4",
day = "1",
doi = "10.1002/jae.929",
language = "English (US)",
volume = "22",
pages = "695--699",
journal = "Journal of Applied Econometrics",
issn = "0883-7252",
publisher = "John Wiley and Sons Ltd",
number = "3",

}

TY - JOUR

T1 - Nonparametric estimation of a hedonic price function

AU - Parmeter, Christopher

AU - Henderson, Daniel J.

AU - Kumbhakar, Subal C.

PY - 2007/4/1

Y1 - 2007/4/1

N2 - Rosen's (1974) theory of hedonic prices is implemented econometrically using recently developed nonparametric techniques to examine the influence of qualitative factors on the price of a house. Our ability to smooth categorical variables leads to greater generalization in the valuation process and provides a canvas for interactions between categorical and continuous variables that is difficult to exploit in parametric and semiparametric models. This is illustrated with a replication of a previously used partially linear model specification.

AB - Rosen's (1974) theory of hedonic prices is implemented econometrically using recently developed nonparametric techniques to examine the influence of qualitative factors on the price of a house. Our ability to smooth categorical variables leads to greater generalization in the valuation process and provides a canvas for interactions between categorical and continuous variables that is difficult to exploit in parametric and semiparametric models. This is illustrated with a replication of a previously used partially linear model specification.

UR - http://www.scopus.com/inward/record.url?scp=34248230818&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=34248230818&partnerID=8YFLogxK

U2 - 10.1002/jae.929

DO - 10.1002/jae.929

M3 - Article

AN - SCOPUS:34248230818

VL - 22

SP - 695

EP - 699

JO - Journal of Applied Econometrics

JF - Journal of Applied Econometrics

SN - 0883-7252

IS - 3

ER -