Identifying latent groupings in market data: a latent class approach

Khalid, Haniza (2014) Identifying latent groupings in market data: a latent class approach. In: International Conference on Research Methods in Management and Social Sciences (ICRMMS-2014), 27-28 September 2014, Kuala Lumpur.

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Abstract

Not all farmlands are purchased for farming. Certain types of farmland are purchased for non-agricultural (development) purposes, but because the new potential use is not evident or determined at the time of transaction, the farmland market appears to operate as one albeit with latent segments. Analyses of land price determinants should involve some measures to ascertain the cause and the degree of functional segmentation in the market, so that the effects of explanatory variables on price can be differentiated according to the segments‟ profiles. One way this can be achieved is by using Latent Class Analysis (LCA). Results for the Malaysian agricultural land price model confirm that there are two underlying distinct distributions and that within each distribution, relationships between variables display considerable local independence. The LCA is particularly appealing where studies lacks quality data or suffers from other forms of data constraints, or where there are more than one expected outcome or response measures. This exercise proves that unobserved segmentation can be predicted with a fair degree of accuracy simply by letting the data „speak for itself‟.

Item Type:	Conference or Workshop Item (UNSPECIFIED)
Additional Information:	3350/38623 -Proceedings of International Conference on Research Methods in Management and Social Sciences (ICRMMS-2014) -ISSN: 2311-9195 (CD-ROM)
Uncontrolled Keywords:	functional segmentation, latent class models, agricultural land prices, hedonic price model
Subjects:	H Social Sciences > HA Statistics > HA29 Theory and method of social science statistics H Social Sciences > HD Industries. Land use. Labor > HD1401 Agriculture
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Dr. Haniza Khalid
Date Deposited:	17 Aug 2015 14:17
Last Modified:	18 Jun 2018 21:55
URI:	http://irep.iium.edu.my/id/eprint/38623

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