An Analysis of the Urban Land-Price Structure by an Hedonic Land-Price Function

The form of the S. Rosen's hedonic land-price function is specified by an empirical method based on both the characteristics of market price data and the Box-Cox transformation, not by a theoretical method of market equilibrium. It is expected that it has higher reality and statistical confidence than the models by linear multiple regression or quantification theory of the first type.In this paper, we propose a model of the nonlinear land-price function that is specified by a hedonic land-price function. We apply this model to an analysis of the urban land-price structure. This model gives more accurate an analysis of the urban land-price structure, not only in factor analysis, but also in the analysis of the marginal price and elasticity.