Spatial and Hedonic Analysis of House Price Dynamics in Warsaw, Poland
Publication: Journal of Urban Planning and Development
Volume 143, Issue 3
Abstract
The aim of the paper is to analyze the dynamics of house prices in the housing market in Warsaw, Poland, taking into account the spatial relationship between prices. In the first part of this research the geographically weighted regression is compared with a linear regression estimated using ordinary least squares with spatial variables. In the second part, the geographically weighted regression is combined with the generalized additive model regression to extract the effect of time on prices. A hedonic index is obtained that is more robust against short-term changes in house prices than the usual linear hedonic index. This is a novel approach, which has not been applied before in the case of the Polish housing market. The paper indicates that the use of spatial information improves the analysis of house prices and should be thus extended to other cities.
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Acknowledgments
The authors would like to thank participants of the III Spatial Econometrics and Regional Economic Analysis Conference at the University of Łódź, the Warsaw International Economic Meeting 2014, and for their hints that helped us to improve this paper. The authors would like also to thank Karin Wagner for the advice on the usage of penalized splines for hedonic price index regressions and Fernendo Tusell for the advice on the code in , which combines the penalized spline regression with the GWR regression. The authors are indebted to the referees of this journal, who helped them to polish the paper.
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Published In
Journal of Urban Planning and Development
Volume 143 • Issue 3 • September 2017
Copyright
©2017 American Society of Civil Engineers.
History
Received: Aug 19, 2016
Accepted: Mar 17, 2017
Published online: Jun 19, 2017
Published in print: Sep 1, 2017
Discussion open until: Nov 19, 2017
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