Abstract
Abstract The effect of time, location, and hedonic on housing price of Taipei city Li-Chi Yeh, Advisor: Professor Che-Chun Lin National Tsing Hua University, Hsin-Chu City, Taiwan We combine matching approach and Hedonic approach to find price index for each period and estimate the effect of characteristic on housing price. To estimate the effect of regional development on housing price, we also add the factor of interaction between transaction time and location, which represent the regional development. Real estate prices have a significant impact on property rights homebuyers. Since Taiwan’s government urged the Housing Registration System online in August 2012, the asymmetry of information between homebuyers and housing agency has disappeared. The day Housing Registration System online open to the public, the system was overwhelmed because of huge number of visitors. It is obvious that there is an urgent demand of methods to estimate reasonable housing prices. The most commonly used method for housing price estimation is Repeat Sales Method and Hedonic Method, both measure the expected price of house after controlling for features of house while both of them have limitation. Matching approach can solve the problem of biased estimation caused by missing variable of Hedonic method and the problem of losing data and nonrandom sample of Repeat Sales method. We use the villages where sample is located and cross term of villages and the time when data are sold to measure the effect of events which could promote regional development, such events we chose urban renewal and the opening of the MRT in our research. We find that both urban renewal and the opening of the MRT makes positive effect on house price, but the degree of influence depend on the type of urban renewal and the surrounding traffic of MRT location. Keywords: ATE, matching, hedonic, housing price index.