The Hedonic Regression Time-Dummy Method and the Monotonicity Axioms
Bibliographic Data
| ID | 19419307 |
|---|---|
| Authors | Daniel Melser (0000-0003-0452-818X, UNSW Sydney, corresponding author) |
| Year | 2005 |
| Volume | 23 |
| Issue | 4 |
| Pages | 485-492 |
| Publication date | 2005-10-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Business and Economic Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0735-0015 • E-ISSN: 1537-2707 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1198/073500104000000578 |
| OpenAlex | W1973774409 |
| Language | EN |
| References cited | 11 |
This article demonstrates that the well-known and much applied hedonic regression time-dummy method, used to construct quality-adjusted price indexes, fails the monotonicity axioms from index theory. The article outlines the hedonic time-dummy method and defines the monotonicity axioms in this context. A simple numerical example is used to illustrate the failure of monotonicity. The reasons for this failure are identified and discussed. The frequency of the violation of monotonicity is considered in general and investigated for a particular dataset. The article concludes by considering the seriousness of the failure of monotonicity and briefly discusses an alternative hedonic method that satisfies monotonicity
Axiom · Econometrics · Economics · Mathematical economics · Monotonic function · Seriousness · Advanced Statistical Methods and Models · Computer Science · Economics of Agriculture and Food Markets · Efficiency Analysis Using DEA · Mathematics
| Highly cited | No |
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