This model can be particularly useful for some housing markets. Court (1939) states that passenger cars serve many diverse purposes and suggests to combine several specifications to form a single composite measure in price index procedures. These scholars document that the methodology was popularised by Zvi Griliches in the early 1960s. The hedonic pricing method uses a product’s price to determine its overall worth rather than the price of the object itself. The purpose of this paper is to comment upon the use of hedonic pricing models for the valuation of property. price model was a hedonic price index for automobiles by A.T. This paper first details the review of the desktop computer price index, and then discusses how the recommendations arising from the review could be extended to provide a framework for the construction of price indexes for other consumer durables. The hedonic pricing model calculates the utility of a product by taking into account the product’s cost, the product’s performance, and the consumer’s expectations for the product. In 2008, a review of a part of method used to construct the index was undertaken, to ensure that the index remains relevant, given the fast evolving nature of computer technology. In 2003, the Australian Bureau of Statistics (ABS) introduced an hedonic price index for desktop computers into the Producer Price Indexes (PPI). When faced with the task of measuring prices for products that undergo rapid quality change (for example, consumer durables such as computers, whitegoods and cars), international best practice is to develop hedonic price indexes, provided suitable source data are available (Australian Bureau of Statistics, 2005). Hedonic price model decomposes its object of study into component attributes and ac-quires the estimated values of these attributes (Lancaster, 1966 Rosen, 1974). Quality change has long been recognised as perhaps the most serious measurement problem in estimating price indexes. Hedonic price theory In the past 3 decades, the hedonic price model was widely used to evaluate the value of houses worldwide.
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