Applying Directed Acyclic Graphs to Assist Specification of a Hedonic Model
Bibliographic Data
| ID | 11484152 |
|---|---|
| Authors | Seong‐hoon Cho (0000-0001-9737-9288, University of Tennessee at Knoxville, corresponding author), Seong-Hoon Cho, Tun-Hsiang Yu, Tun‐Hsiang Yu (0000-0002-8205-2941, University of Tennessee at Knoxville), Seung Gyu Kim (0000-0001-5763-8548, Kyungpook National University), Roland K Roberts (University of Tennessee at Knoxville), Daegoon Lee (Washington State University) |
| Year | 2012 |
| Volume | 27 |
| Issue | 7 |
| Pages | 984-1007 |
| Publication date | 2012-10-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Housing Studies (JOURNAL) |
| Journal identifiers | ISSN: 0267-3037 • E-ISSN: 1466-1810 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/02673037.2012.725832 |
| OpenAlex | W2053535456 |
| Language | EN |
| Citations received | 2 |
| References cited | 54 |
This research empirically tests the hypothesis that utilizing directed acyclic graphs (DAGs) as an ex-ante process to select variables for a hedonic model improves the model's performance. The results for both new and existing house submarkets indicated that DAG analysis mitigated the multicollinearity issue commonly observed in hedonic models. Using DAG analysis also improved the goodness-of-fit of the hedonic model for the new submarket. However, model specification through DAG analysis does not offer clear implications for improving forecasting accuracy, efficiency, and spatial error autocorrelation. The findings imply that DAG analysis for model specification can be a complementary step in the process of estimating hedonic models, especially when reducing standard error bias by alleviating potential multicollinearity is important in determining the attributes that affect housing prices
Algorithm · Autocorrelation · Collinearity · Directed acyclic graph · Econometrics · Multicollinearity · Regression analysis · Specification · Statistics · Computer Science · Economic and Environmental Valuation · Housing Market and Economics · Mathematics · Spatial and Panel Data Analysis
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| Unique citing works | 2 |
|---|---|
| Citations per year | 0,67 |
| Citation span | 2023 - 2023 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 2 |