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Hedonic Analysis in a Spatial Context: Theoretical Problems in Valuing Location‐Specific Amenities *
Author(s) -
GRAVES PHILIP E.,
KNAPP THOMAS A.
Publication year - 1985
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1985.tb02029.x
Subject(s) - amenity , valuation (finance) , economics , hedonic pricing , wage , context (archaeology) , econometrics , microeconomics , labour economics , geography , archaeology , finance
Hedonic analysis is frequently implemented to generate implicit prices for location‐specific amenities within single markets, either in cross‐city wage differentials or in intra‐city rent gradients. Amenities are shown to be generally priced in both land and labour markets, with single‐market valuations tending to understate true amenity values. Establishing a correct multi‐market amenity valuation model is seen to depend on the resolution of a host of additional issues.