Land Value and Parcel Size: A Semiparametric Analysis
Daniel P. McMillen
University of Illinois at Chicago - Center for Urban Real Estate
University of Otago - School of Business - Department of Economics
Journal of Real Estate Finance and Economics, 1998
We use a semiparametric estimator to analyze the relationship between land values and parcel size in a sample of 158 undeveloped parcels in the Portland, Oregon metropolitan area. The semiparametric estimator combines the benefits of parametric and nonparametric estimation. The value-size relationship is estimated nonparametrically, which permits the function to be linear, convex, and concave in different regions. A simple log linear parametric relationship is assumed for the rest of the model, which conserves degrees of freedom and simplifies hypothesis testing. Our semiparametric estimates do not reject log-linearity for the value-size relationship.
JEL Classification: R0Accepted Paper Series
Date posted: June 4, 1998
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo6 in 0.359 seconds