Nonlinearity of Housing Price Structure : Assessment of Three Approaches to Nonlinearity in the Previously Owned Condominium Market in the Tokyo Metropolitan Area

This paper examines three methods that explicitly take nonlinearity into account in hedonic price estimation: (1) a switching regression model (SWR) in parametric estimation, (2) a continuous dummy variable model (DmM) in non-parametric estimation, and (3) a generalized additive model (GAM) in semi-parametric estimation. These non-linear estimation methods… (More)