Bayesian Model Averaging in the Context of Spatial Hedonic Pricing: An Application to Farmland Values

Geerte Cotteleer, Tracy Stobbe and Gerrit van Kooten

No 2007-07, Working Papers from University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group

Abstract: Since 1973, British Columbia created an Agricultural Land Reserve to protect farmland from development. In this study, we employ GIS-based hedonic pricing models of farmland values to examine factors that affect farmland prices. We take spatial lag and error dependence into explicit account. However, the use of spatial econometric techniques in hedonic pricing models is problematic because there is uncertainty with respect to the choice of the explanatory variables and the spatial weighting matrix. Bayesian model averaging techniques in combination with Markov Chain Monte Carlo Model Composition are used to allow for both types of model uncertainty.

Keywords: Bayesian model averaging; Markov Chain Monte Carlo Model Composition; spatial econometrics; hedonic pricing; GIS; urban-rural fringe; farmland fragmentation (search for similar items in EconPapers)
JEL-codes: C50 R11 R14 R15 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2007-11
New Economics Papers: this item is included in nep-agr, nep-ecm, nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://web.uvic.ca/~repa/publications/REPA%20work ... kingPaper2007-07.pdf Final version, 2007 (application/pdf)

Related works:
Journal Article: BAYESIAN MODEL AVERAGING IN THE CONTEXT OF SPATIAL HEDONIC PRICING: AN APPLICATION TO FARMLAND VALUES (2011)
Working Paper: Bayesian Model Averaging in the Context of Spatial Hedonic Pricing: An Application to Farmland Values (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:rep:wpaper:2007-07

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