Dwelling Age Heteroskedasticity in Repeat Sales House Price Equations

Goodman, Allen C.; Thibodeau, Thomas G.

doi:10.1111/1540-6229.00742

Cited by 117 publications

(142 citation statements)

References 19 publications

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“…Most of the estimates imply an elasticity of 1, that is, a 1% larger apartment has a 1% higher price. Overall, this is in line with the literature (e.g., Goodman andThibodeau, 1995 or Anselin andLozano-Gracia, 2008).…”

Section: Hedonic Pricesupporting

confidence: 92%

Urban House Prices: A Tale of 48 Cities

Kholodilin

Ulbricht

2015

Economics

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In this paper, the authors construct a unique data set of Internet offer prices for flats in 48 large European cities across 24 countries. The data collected between January and May 2012 from 33 websites, are drawn from Internet advertisements of dwellings. Using the resulting sample of more than 1,000,000 announcements, the authors compute the quality-adjusted city-specific house prices. Based on this information, they investigate the determinants of the apartment prices. Four factors are found to be relevant for the dwelling price level using Bayesian Model Averaging: Population density, mortgage per capita, income inequality, and unemployment rate. The results are robust to applying two alternative estimation techniques: OLS and quantile regression. Based on the auhors´ estimation results they are able to identify cities where the prices are overvalued. This is a useful indication of a build-up of house price bubbles. JEL C21 R31

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Section: Hedonic Pricesupporting

confidence: 92%

Urban House Prices: A Tale of 48 Cities

Kholodilin

Ulbricht

2015

Economics

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“…In terms of methods for addressing the problem of omitted variable bias accompanying unobservable variables, attempts have been made to estimate hedonic functions by performing market segmentation [5,6] or applying a spatial econometric method incorporating spatial autocorrelation in the error term. However, if segmenting regions, while various parameters are estimated in a more region-based form, it is difficult to obtain consistency across adjacent regions due to the segmentation of markets.…”

Section: Open Accessmentioning

confidence: 99%

“…To deal with this, geographical coordinate data (longitude and latitude) based on Jackson's method [5] was incorporated.…”

Section: Estimation Modelmentioning

confidence: 99%

Estimation of Hedonic Single-Family House Price Function Considering Neighborhood Effect Variables

Shimizu

2014

Sustainability

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Abstract:In the formulation of hedonic models, in addition to locational factors and building structures which affect the house prices, the generation of the omitted variable bias is thought to occur in cases when local environmental variables and the individual characteristics of house buyers are not taken into consideration. However, since it is difficult to obtain local environmental information in a small neighborhood unit and to observe individual characteristics of house buyers, these variables have not been sufficiently considered in previous studies. We demonstrated that non-negligible levels of omitted variable bias are generated if these variables are not considered.

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“…Both are detrimental to the stability of regression coefficients, even more so to the accuracy of their standard errors (Dubin, 1988(Dubin, & 1992Anselin and Rey, 1991;Thibodeau, 1995 &Can and Megbolugbe, 1997;Basu and Thibodeau, 1998;Pace et al, 1998;.…”

Section: Market Heterogeneity and Spatial Dependencementioning

confidence: 99%