A model that calculates value based on physical characteristics is known as?

A model that calculates value based on physical characteristics is known as hedonic modeling. This approach is grounded in the idea that the price of a good is determined by its attributes or characteristics, which contribute to its overall value. For example, in real estate, various physical features of a property—such as size, location, number of bedrooms, and amenities—can significantly influence its market price.

Hedonic models utilize statistical methods to decompose prices into the contributions of these characteristics, allowing for a clear understanding of how much each feature adds to the overall value. This method is widely employed in various fields, including economics, marketing, and real estate analysis, where understanding the relationship between attributes and pricing is crucial for valuation.

The other options relate to different contexts; for instance, repeat sales refer to a method used in real estate to track property value changes over time, tax assessment involves evaluating property value for tax purposes without necessarily focusing on specific physical attributes, and privately calibrated typically refers to models adjusted using proprietary data or methodologies. These approaches do not centrally focus on the physical characteristics in the way that hedonic modeling does.