Resumen de Is a Hedonic Approach Only Applicable to Small Scale Public Projects?: A general equilibrium analysis
Despite the conventional proposal that the hedonic approach is limited to a marginal improvement of an amenity resulting from a public policy and project, the present study was performed to examine the accuracy of this method in a nonmarginal context. A numerical general equilibrium analysis was adopted to examine the overestimation theorem of capitalization in mixed land use. The overestimation ratios of most cases were small and maximum ranges of the ratios with respect to area and the degree of improvement in the amenity resulting from the policy and project were identified.
The results were also compared with the ratios of an actual large-scale transport project in Japan estimated by a general equilibrium analysis and using national hedonic price functions.
