A Study on Inference from Distance Variables in Hedonic Regression

In urban area, several landmarks may affect housing
price and rents, and hedonic analysis should employ distance variables
corresponding to each landmarks. Unfortunately, the effects of
distances to landmarks on housing prices are generally not consistent
with the true price. These distance variables may cause magnitude
error in regression, pointing a problem of spatial multicollinearity. In
this paper, we provided some approaches for getting the samples with
less bias and method on locating the specific sampling area to avoid
the multicollinerity problem in two specific landmarks case.

• Yan Wang
• Yasushi Asami
• Yukio Sadahiro

• Landmarks
• hedonic regression
• distance variables
• collinearity
• multicollinerity.

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