Determinants of Housing Cost: Hierarchical Linear Model for Estimating Coefficients of a Hosing System Dynamics Model

주거비용에 영향을 미치는 요소 분석: 시스템다이내믹스 계수추정을 위한 다층모형과 회귀모형의 비교

To measure the effect of school zone on housing cost, Linear Regression Model is widely used, and school zone is known as a key determinant of housing cost in Korea. However, when the Hierarchical Linear Model (HLM) is applied with the same data, school effect on housing cost becomes statistically non-significant. It is because HLM effectively separates the effect of individual housing's attributes from the group effect. In sum, the housing cost of Kangnam, where good public schools are located, is apparently is higher than that of Kangbuk. However, the school effect on housing cost (Level 2) becomes non-significant when individual housing's attributes (Level 1) are controlled with HLM.