This paper applies the spatiotemporal hedonic approach to analysis of office transaction prices in the Paris property market (i.e. central Paris and its inner suburbs). The analysis focuses primarly on the market's two main business districts (the CBD and the La Defense Distrcit). We find that spatial and temporal dependence effects are strongly present in the submarkets. Additionally, we propose a hybrid method for incorporating a temporal regime into the spatiotemporal autoregressive model proposed by Pace, Barry, Clapp and Rodriguez (1998). Regime switching around 1997 (i.e. in the presence of temporal heterogeneity) substantially affects the significance of spatial and temporal dependences. Finally, we build a new price index that incorporates both spatiotemporal dependences and temporal heterogeneity. This index differs strongly from the usual hedonic price index
NAPPI-CHOULET, I. and MAURY, T.P. (2008). A Spatiotemporal Autoregressive Price Index for the Paris Office Property Market. ESSEC Business School.