How to Better Measure Hedonic Residential Property Price Indexes
Author | : Mick Silver |
Publisher | : International Monetary Fund |
Total Pages | : 89 |
Release | : 2016-11-16 |
ISBN-10 | : 9781475555295 |
ISBN-13 | : 1475555296 |
Rating | : 4/5 (95 Downloads) |
Download or read book How to Better Measure Hedonic Residential Property Price Indexes written by Mick Silver and published by International Monetary Fund. This book was released on 2016-11-16 with total page 89 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hedonic regressions are used for property price index measurement to control for changes in the quality-mix of properties transacted. The paper consolidates the hedonic time dummy approach, characteristics approach, and imputation approaches. A practical hedonic methodology is proposed that (i) is weighted at a basic level; (ii) has a new (quasi-) superlative form and thus mitigates substitution bias; (iii) is suitable for sparse data in thin markets; and (iv) only requires the periodic estimation of hedonic regressions for reference periods and is not subject to the vagrancies of misspecification and estimation issues.