Valuation of urban amenities using an hedonic price model

Summary

This paper examines the ability of the hedonic price method to estimate the premium offered by particular housing attributes or environmental characteristics in an urban setting. Problems of non‐separability in variables within an empirical model, suggest that this methodology is not always suitable for the estimation of specific housing attributes, and an alternative approach to this problem is suggested.

Keywords:

• hedonic pricing
• urban amenities
• house prices