A comparative analysis of Taipei housing model

This paper attempts to demonstrate the usefulness of the hedonic approach to the study of housing markets in Taipei, and discusses the price variations on hedonic structure within a metropolitan area. A method proposed by Box and Cox is used to search for the best hedonic specification. Findings suggest that the empirical works reject the identical relationships across submarkets. The specification of (lambda) in each submarket is different, ranging from 0.03 to 0.90.