HEDONIC PRICING WHEN HOUSING IS ENDOGENOUS: THE VALUE OF ACCESS TO THE TRANS-ISRAEL HIGHWAY.

ABSTRACT Standard hedonic house pricing assumes that house prices are independent of the intangible to be priced. A methodology is proposed in which the supply as well as the demand for housing depends on the intangible. The methodology is applied to value access to the Trans-Israel Highway (TIH). U...

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Publicado en:Journal of Regional Science Vol. 56; no. 1; pp. 134 - 156
Autores principales: Beenstock, Michael, Feldman, Dan, Felsenstein, Daniel
Formato: Artículo
Publicado: Wiley-Blackwell Jan2016
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1111/jors.12207
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        atl: HEDONIC PRICING WHEN HOUSING IS ENDOGENOUS: THE VALUE OF ACCESS TO THE TRANS-ISRAEL HIGHWAY.
      aug:
        au:
          Beenstock, Michael
          Feldman, Dan
          Felsenstein, Daniel
        affil:
          Department of Economics, Hebrew University of Jerusalem, Mt Scopus Jerusalem, 91905, Israel
          Department of Geography, Hebrew University of Jerusalem, Mt Scopus Jerusalem, 91905, Israel
      su:
        Economics
        Domestic architecture
        Home prices
        Demand function
        House construction
        Kevish Hotseh Yiśra'el (Israel)
      sug:
        subj:
          Economics
          Domestic architecture
          Residential building construction
          New Housing For-Sale Builders
          New Single-Family Housing Construction (except For-Sale Builders)
          Home prices
          Demand function
          House construction
          Kevish Hotseh Yiśra'el (Israel)
      ab: ABSTRACT Standard hedonic house pricing assumes that house prices are independent of the intangible to be priced. A methodology is proposed in which the supply as well as the demand for housing depends on the intangible. The methodology is applied to value access to the Trans-Israel Highway (TIH). Using spatial panel data (2002-2008) we show that TIH had two effects on the housing market. It increased house prices in locations with greater access to TIH, and it affected housing construction. Standard hedonic pricing would have underestimated the value of access because it ignores the effects of housing construction on the intangible to be priced. House prices began to increase three years before TIH was inaugurated, but housing construction did not anticipate the inauguration of TIH.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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