How Does Location Matter in Regions of Significant Spatial Heterogeneity?

Abstract

To be comThis paper examines the impact of a number of location attributes on residential prices to dispersed and heterogeneous territorial units, the Greek Islands. While using a well-researched and widely applied method, the uniqueness of this study lies with the challenging geo-spatial identification of the properties’ location since the islands are not entirely mapped. Hedonic models were applied on: a) clustered-islands in administrative/geographical groups and b) individual-island-level regressions. The results reveal that due to the presence of unobserved heterogeneity, the optimum and robust results come with the individual island regressions which identify location attributes very significant, although varying substantially across islands.