Abstract
Accessibility is frequently used for measuring location in housing studies, but specifications of the measures differ greatly and its implications are hardly discussed. This paper sets out to systematically review accessibility measures that are used in hedonic price models (HPM), a method for estimating the implicit value of housing characteristics, such as location. From a systematic database search of peer-reviewed journal articles, we examined 54 articles that applies accessibility measures in hedonic price models that are based on three aspects of measure specification: type, impedance, and opportunities. We find that there are clear couplings between different impedances, types, and opportunities. We also noticed a tendency towards less advanced measurements, such as Euclidean distance and zonal measures, being used. Furthermore, we argue that these basic measures have a weaker connection to consumer perception, which is fundamental to the hedonic price approach. We also observed a lack of consideration to how this coupling between type, impedance, and opportunity could possibly affect the results. Theoretically, we can already conclude that some dominating impedances poorly relate to the fundamental theories of HPM, but this also points to the need for further research to empirically test the influence of the type-impedance-opportunity specification on the price estimates in HPM.
Highlights
IntroductionLocation is a key part of valuation of housing and if we consider the location of a dwelling as the geographical position in relation to its surroundings, accessibility is an obvious and often used way to measure it
A hedonic price model (HPM) is a statistical method to estimate monetary value on a set of characteristics of a good, typically housing, and it is commonly used as a basis in policy making [1,2,3].Location is a key part of valuation of housing and if we consider the location of a dwelling as the geographical position in relation to its surroundings, accessibility is an obvious and often used way to measure it
An example of the first is the impact of aggregation of geographical data, which strongly relates to the specification of accessibility, often referred to as the modifiable areal unit problem (MAUP) [4]
Summary
Location is a key part of valuation of housing and if we consider the location of a dwelling as the geographical position in relation to its surroundings, accessibility is an obvious and often used way to measure it. Measures of accessibility are key variables in HPM. How measures of accessibility are specified differ amongst models. Inherited in this is a potential of negative impact on the results, first in terms of model robustness and second in terms of theoretical foundation. An example of the first is the impact of aggregation of geographical data, which strongly relates to the specification of accessibility, often referred to as the modifiable areal unit problem (MAUP) [4]
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