... of the outcomes (that characterises the hedonic pricing models). This paper shows that multilevel modelling (MLM) can represent a suitable solution to this trade-off. Design/methodology/approach This paper uses the so-called “multilevel modelling” (henceforth MLM). MLM can represent a further step forward...

... the income capitalisation approach and the hedonic model, the standard hedonic price function is introduced into the basic model of income capitalisation instead of the house market value. It follows that, from the partial derivative, a direct relation between hedonic prices and discount rate can be obtained...