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Hedonic Analysis of Land Price Case Study in Tehran, Zone 8

Saharkhiz, Morteza | 2012

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 42804 (44)
  4. University: Sharif University of Technology
  5. Department: Management and Economics
  6. Advisor(s): Fatemi, Farshad; Barakchian, Mahdi
  7. Abstract:
  8. The land market is one of the most important markets in the economy. Land is a factor of production, store of value, and a major part of household’s portfolio. Although price of land is an essential information for institutions like municipalities whom tax the landlords, or for financial intermediaries like banks whom use the land as collateral, studies about price of land and its spatial and time variations are scrace in Iran. Furthermore, most of studies in other countries are usually based on inflexible OLS estimators. Thus, this study has two main contributions. First, to analyze the usefulness of hedonic modeling in explaining the price of land, utilizing a unique dataset for Tehran which is rare in similar studies. Second, to replace parametric estimators with more flexible methodes like semiparametric estimators in analysis of land’s price. Our results in zone eight of municipality of Tehran are consistent with the usual urban economic theories. Variables like area, social status of the neighborhood, and permitted building volume has a positive effect on the price of land, but remoteness of land from places like park and highway has a negative effect on it. We have also used Robinson (1988) semiparametric method for estimation but it did not improve our result.
  9. Keywords:
  10. Land Price ; Hedonic Price Function ; Parametric Prediction ; Semiparametric Method ; Flexible Estimation Method