title: On the Issue of Functional Form Choice in Hedonic Price Functions: Further Evidence
abstract: / Historically, researchers applying the hedonic technique devoted little effort to testing alternative functional forms. This study used Box-Cox transformations on a hedonic model examining property value effects of a closed landfill to help select among alternative functional forms. Although this particular application found that a log-log functional form was appropriate, it appears that functional form may vary by problem and case study area selected. Benefit estimates generated using the hedonic technique may be substantial over- or underestimates if the incorrect functional form is chosen. Proximity to the landfill had no significant effect on property values.KEY WORDS: Hedonics; Functional form; Box-Cox; Landfills
authors.affiliation: Department of Resource Economics and Development University of New Hampshire Durham, New Hampshire 03824, USA
authors.initials: JM
authors.lastname: Halstead
authors.initials: RA
authors.lastname: Bouvier
authors.initials: BE
authors.lastname: Hansen