| The Journal of Real Estate Finance and Economics | |
| Volume 11, Issue 2, Article 3 (Abstract) | |
| Title: | Implicit Pricing Across Residential Rental Submarkets |
| Author: | Marcus T. Allen, Thomas M. Springer and Neil G. Waller |
| Abstract: | This paper examined implicit price differences of rental housing characteristics across various property types to measure whether determinants of rents are valued in the aggregate or separately. The results show that hedonic price functions are not identical across property types, which suggests that ordinary least squares is not the appropriate estimation technique when modeling the implicit prices for an aggregate rental market. Generalized least squares estimation of a random coefficient model removes that restriction of fixed parameters imposed by OLS and allows estimation of implicit prices for rental markets containing multiple property types. |
| Keywords: | implicit prices, market segmentation, rental markets |