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An Analysis of Household Valuations and Preference Structures in Rio de Janeiro, Brazil
Author(s) -
ARYEETEYATTOH SAMUEL
Publication year - 1992
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/j.1468-2257.1992.tb00578.x
Subject(s) - variety (cybernetics) , preference , revealed preference , dimension (graph theory) , sample (material) , order (exchange) , predictive power , economics , econometrics , welfare economics , business , microeconomics , statistics , mathematics , philosophy , chemistry , finance , chromatography , epistemology , pure mathematics
This paper applies a semi‐logarithmic hedonic model to a sample of 1,115 households drawn from low‐, moderate‐, and upper‐income regions in Rio de Janeiro, Brazil in order to measure household valuations of a variety of dwelling attributes. The results: 1) allow an assessment of the predictive power of the hedonic function; 2) enable a determination of whether the data provide sufficient information on housing conditions in Rio to make hedonic estimations worthwhile; and 3) provide an important spatial dimension which is useful in evaluating the relative importance of a variety of housing attributes to households located across income sub‐regions in Rio. The study demonstrates the need to strategically design housing projects that are consistent with the preference structures of intended beneficiaries. This, in turn, should facilitate the design of more efficient and equitable cost recovery affordable housing programs in developing countries.