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A Theoretical Basis for Hedonic Regression: A Research Primer
Author(s) -
Edmonds Radcliffe G.
Publication year - 1984
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.00311
Subject(s) - econometrics , economics , hedonic index , regression , frontier , basis (linear algebra) , consumption (sociology) , linear regression , hedonic regression , function (biology) , regression analysis , space (punctuation) , mathematical economics , mathematics , statistics , computer science , price index , sociology , geography , social science , geometry , archaeology , evolutionary biology , biology , operating system
The hedonic regression, estimation of an hedonic price function, is shown to be an approximation of a multifaceted consumption possibilities frontier in characteristics space. Consequently, a linear functional form is inappropriate, included characteristics must be restricted to those which pertain to the good itself, and the estimated intercept and qualitative characteristic coefficients are easily interpretable.