Hedonic Approach to Evaluate Residential Space Value Using Demand-supply Characteristics

Abstract

The paper presents simple econometric models which could estimate effects caused by transportation investment and district redevelopment in order to cope with recent urban problems.
LISREL modeling applied in marketing study and tobit modeling were employed here. The former has two advantages comparing with conventional econometric models. The first is its structural simplicity. The second is availability of introducing latent variables composed of some indicators observed by actual data. This is utilized for defining a new concept which structured the evaluation function. After the estimation of models, the effects of external changes on transportation could be evaluated using the hedonic models.