| The Journal of Real Estate Finance and Economics | |
| Volume 17, Issue 3, Article 2 (Abstract) | |
| Title: | Land Value and Parcel Size: A Semiparametric Analysis |
| Author: | Paul Thorsnes and Daniel P. McMillen |
| Abstract: | We use a semiparametric estimator to analyze the relationship between land values and parcel size in a sample of 158 undeveloped parcels in the Portland, Oregon metropolitan area. The semiparametric estimator combines the benefits of parametric and nonparametric estimation. The value-size relationship is estimated nonparametrically, which permits the function to be linear, convex, and concave in different regions. A simple log-linear parametric relationship is assumed for the rest of the model, which conserves degrees of freedom and simplifies hypothesis testing. Our semiparametric estimates do not reject log- linearity for the value-size relationship. |
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