Hedonic Analysis Of Housing Price In Baoding

Recently, housing price climbs up continuously. Housing price has not only aroused ordinary people's concern, but also became a focus in academic research. Thus it has great significance in theory and practice to study housing price.As foreign real estat market is mature and date can be collected easely, empirical analysis of determiniants of housing price is universal in overseas. On the contrary, quantitative or empirical study in China is very few. Hedonic modle is a econometric method for analysizing goods' characteristic price. Its purpose is to separate the contribution of housing characteristic to its price.Through modlling a hedonic regression, this method can recognize and measure the relationship between housing characteristic and housing price.Based on the results from previous studies, this paper analysizes main attributes that affect residential housing price in Baoding city. Firstly, this paper provides a overview of hedonic price studies and the theoretical basis and empirical framework of hedonic modle. Then, it introdouces the definition and hypothesis of the model and the procedure of modelling. A in-depth study has been given to the data analysis and the choice of function form, it is followed by a discussion on the technical issue with respect to the statistical and econometrical test, such as multicollinerity. The next section presents an empirical study on residential housing price of Baoding .In this part ,the paper provides an outline of Baoding housing market in reference to previous research on the choice of variables and functional form, according to the reality of Baoding. Using STATA software, several functional form is estimated and superior modle is sellected. Regrssing this model, we can get housing attributes' implicite price, it reveals the relationship between housing price and housing characteristics. Finally, the paper summarizes the conclusion drawn from the present investigation and suggests future research directions on the topic.