A Research on Inference from Multiple Distance Variables in Hedonic Regression – Focus on Three Variables
In urban context, urban nodes such as amenity or hazard will certainly affect house price, while classic hedonic analysis will employ distance variables measured from each urban nodes. However, effects from distances to facilities on house prices generally do not represent the true price of the property. Distance variables measured on the same surface are suffering a problem called multicollinearity, which is usually presented as magnitude variance and mean value in regression, errors caused by instability. In this paper, we provided a theoretical framework to identify and gather the data with less bias, and also provided specific sampling method on locating the sample region to avoid the spatial multicollinerity problem in three distance variable’s case.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1100424Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF
 Lancaster, K. J. “A new approach to consumer theory”, Journal of Political Economy 74, 1966, pp.132–57.
 Sherwin Rosen, “Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition”, Journal of Political Economy, Vol. 82, No. 1, Jan. - Feb., 1974, pp. 34-55
 Silvey, F. “Multicollinearity and Imprecise Estimation”, Journal of the Royal Statistical Society, Series B, 35, 1985, pp.99-115
 Coo, R. D. “Detection of influential observation in linear regression”, Technometrics,19, 1977, pp.15-18
 Herl, Arthur E. and Robert W. Kennard. “Ridge Regression: Biased Estimation of Nonorthogonal Problems”, Technometrics, 12, 1970a. pp. 55-67.
 Hoaglin, D. C., and Welsch, R. E. “The hat matrix in regression and ANOVA”, Amer. Statistician, 1978, 3217-22.
 Neter, J, Kun Neter, J., Kutner, M. H., Nachtshein, C. J.,Wasserman,W., “Applied Linear Regression Models”,3rd ed. Homewood III, Irwin. 1996.
 Danel A. Griffiths, “Modeling Urban Population Density in a Multi-centered City.” Journal of Urban Economics 9, 1981. pp.298-310.
 Eric Heikkila, “Mullticollinearity in Regression Models with Multiple Distance Measures”, Journal of Regional Science, vol.28. No.3, 1998.
 M. Tiefelsdorf, “Misspecifications in interaction model distance decayrelations: A spatial structure effect” J. Geograph Syst, 2003, 5: pp25-50
 Jaewoo Lee, Keemin Sohn, “Identifying the Impact on Land Prices of Replacing At-grade or Elevated Railways with Underground Subways in the Seoul Metropolitan Area”, Urban Studies Journal Limited, 2013, DOI:10.1177/0042098013484543
 Heather A Sander, Debarchana Ghosh, David van Riper, Steven M Manson, “How do you measure distance in spatial models? An example using open-space valuation”, Environment and Planning B: Planning and Design, volume 37, 2010, pp.874 – 894.
 Justin M. Ross, Michael C. Farmer, Clifford A. Lipscomb, “Inconsistency in Welfare Inferences from Distance Variables in Hedonic Regressions”, Journal of Real Estate Finance and Economics, 43, 2011, pp.385-400.
 Hao Huang, Li Yin, “Creating sustainable urban built environments: An application of hedonic house price models in Wuhan, China”, Springer Science + Business Media Dordrecht, 2014 J, House and the Built Environ DOI 10.1007/s 10901-014-9403-8, Urban Geography, Vol. 35, No.3, 2014, pp. 420-439
 D. Schmeidler, “The nucleolus of a characteristic function game”, SIAM Journal of Applied Mathematics, 17, 1969, pp. 1163–1170