Comparison bettwen Traditional Hedonic Price Model and Reid Hedonic Price Model (Case Study of Urban Regionsof Hamedan Province)

Gholizadeh, Ali Akbar; Behbudi, Davood; Shokarian, Ehsan

doi:10.22055/jqe.2010.10654

Comparison bettwen Traditional Hedonic Price Model and Reid Hedonic Price Model (Case Study of Urban Regionsof Hamedan Province)

https://doi.org/10.22055/jqe.2010.10654

Volume 7, Issue 2 - Serial Number 2
Summer 2010

Pages 119-147

Quarterly Journal of Quantitative Economics (JQE)

Authors

Ali Akbar Gholizadeh

Davood Behbudi

Ehsan Shokarian

Abstract

This study identify effective factors on housing price at urban regions of Hamedan Province. Between different models, Hedonic Model was used. In traditional model of hedonic price, structural characteristics of dwelling unit and also environmental and neighborhood characteristics for estimating of house price is spotted. Model of this study is Reid suggested model. This model also considers owners and buyers characteristics of dwelling units. On the basis of determination coefficient Reid Model is better in comparison with traditional hedonic model. Reid Model is estimated for owners and tenants separately. Results of this study shows that quality of housing services such as land area, number of rooms, kinds of skeleton (metal or brick), annual fixes, package and lift are effective and significant. Demographic variables such as age, sex, level of education and marriage position of owners are important too.

Keywords

Reid hedonic price model

housing price

Hamedan Province

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