The hedonic method is used to price and estimate economic values for ecosystem or environmental services that have an effect on market prices. It is most commonly applied to variations in prices of housing that attribute the effects of local environmental conditions. The monetary value of two similar houses, with same facilities and amenities may be different. The value may reflect the difference in the access to the work-place, commercial amenities, environmental facilities such as parks, etc. and also the environment of the neighborhood.
This factor actually puts into question the fact that how much are people ready to spend on the quality of the environment. The hedonic method can be used to estimate economic values or costs associated with environmental quality, air pollution, water pollution, or noise pollution, environmental amenities, such as aesthetic views or proximity to recreational sites and also proximity to basic amenities such as gas station, bus station and super markets. But with relation to Consumer Price Index the context changes a little.
For example, if a television in the CPI is replaced by one with a larger screen and higher price, an adjustment can be made to the price difference by estimating what the old television would have cost, had it had the larger screen size. Many of the challenges in producing a CPI arise because the number and types of goods and services found in the market are constantly changing. If the CPI tried to maintain a fixed sample of products, that sample quickly would shrink and become unrepresentative of what consumers were purchasing.
Each time that an item in the CPI sample permanently disappears from the shelves, some determination has to be done about the relative qualities of the old and replacement item. If it did not–for example, if it treated Price Check on Aisle2 3 all new items as identical to those they replaced — significant upward or downward CPI biases would result. References Handbook on hedonic indexes and quality adjustments in price indexes. Jack E. Triplett.
Remember! This is just a sample.
You can get a custom paper by one of our expert writers.
Get your custom essay
Helping students since 2015
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download