Assessing hedonic indexes for housing
Presents a hedonic index for housing services fit to the 1975 rental housing market in St. Joseph County, Indiana, one of the Housing Assistance Supply Experiment's two sites. Comparing the index with one for Brown County, Wisconsin, shows that the two are very similar and that most of the coefficients do not differ significantly between the two indexes. The dissimilarities, however, should serve as a warning to analysts considering using a hedonic index in a market other than the one for which it was fit. An analysis of renters' expenditure patterns for summary attribute groups indicates that expenditures for quality increase more than those for space as income increases. At the same time, renters tend to forgo employment accessibility for higher quality neighborhoods. The expenditure analysis provides an excellent example of hedonic indexes' usefulness for analyzing multidimensional commodities.