The Application Of Semiparametric Approach In Hedonic Price Equation

Price index analysis is an important and effective tool in economic market analysis. In the real estate price index analysis, using Hedonic price equation is a quite popular method, and it could be applied in many other endurable consumable price index analyses. There are several methods that be used in the research of real estate price index analysis, compare with others, Hedonic method is more strictness and less subjectivity. It uses a fix quantify approach, quantize the degree of quality diversification by using mathematical method scientifically, therefore, it could avoid the measuring warp caused by some subjective reasons, furthermore Hedonic price equation could figure out the price index all by itself, so that it has some advantages compared with other methods.Existing research about Hedonic price equation mainly localized in traditional parametric estimation method, in which including several dummy variables or temporal high order polynomial when deal with the time effect. Dummy variables can only describe the discrete changes of price index, for instance, using dummy variables in sales off-season can not provide upper precision estimating result. Especially when time path is highly nonlinearity, polynomial method will become complex and hard to operate. As the price index changes when location change, therefore the parametric form of the model should be extended by including location effect and the interaction of time and location, here the parametric model is unsuitable.The test build the Hedonic price equation first and use the traditional parametric method to estimate and analysis it, the use our proposed semi-parametric regression method to analysis the equation, by empirical analysis and research, compare the result with two methods, then we could find a more reasonable and effective approach to use the Hedonic price equation in price index analysis.The test described according to the following frame:Chapter one, this part dissertate the meaning of the selective subject, as well as the research actuality and development and the problems that drafted to solve in the text.Chapter two, particularly describe the semiparametric regression model and theHedonic priee equation that we used in the text, and proposed some problems in allusion to the shortage.Chapter three, as the main inaugurate section of the text, built a corresponding model in allusion to the problem mentioned above, then use the traditional parametric and proposed semiparametric to analysis the model and lodge correlative test approach.Chapter four, this section is the empirical analysis part, use the data we obtained and the method mentioned above with the software MATLAB, compare the result, so that it will prove the validity of our method and we would have a better approach in price index analysis.Chapter five, this part will summarize the whole thesis and lay out the conclusion.