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Hedonic index - Wikipedia, the free encyclopedia
Hedonic index is any price index, which uses information from hedonic regression. Hedonic regression describes how product price could be explained by the product's characteristics. Hedonic price ind...
en.wikipedia.org/wiki/Hedonic_index |
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The word hedonic refers to pleasure, and reflects the desirability or quality of otherwise non-priced aspects of the environment. ... E.g. The effect on residential home values of quiet, stable neighborhoods with fine views, low crime, easy commutes, and little smog.
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The prices of two houses may differ considerably, even with the same facilities (size, same structure, etc). The prices may reflect the difference of: ... Access to the work-place, commercial amenities, environmental facilities such as parks, ... Environmental qualities of the neighbourhood...
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Non-Market Goods - Revealed Preferences - Hedonic Pricing Method; Methodology - Lake State Examples - Other Examples ; Back to Table of Contents ;
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7.2.3.2 Property Prices or the Hedonic Method ... 7.2.3.3 Contingent Valuation Method ... This method is the only one by which non-use values can be estimated, since hypothetical markets can be created for them. Since it is not based on revealed preferences, on which the other demand approaches are based,
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A series of hedonic price models were estimated in order to determine whether the prices reflected such environmental amenities as green neighborhood, clean air or low noise. House or apartment characteristics (including prices) recorded by four local real estate agencies provided the core data base of the survey.
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The currently preferred method of quality adjustment is the hedonic method. This method (or class of methods (Triplett (1990)), relies on statistical techniques to estimate the implicit prices of product characteristics from observed prices and quantities sold in the marketplace.
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