How to Better Measure Hedonic Residential Property Price Indexes
Electronic Access:
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Summary:
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.
Series:
Working Paper No. 2016/213
Subject:
Commodities Consumer price indexes Inflation Land prices Price indexes Prices Silver
English
Publication Date:
November 8, 2016
ISBN/ISSN:
9781475552249/1018-5941
Stock No:
WPIEA2016213
Pages:
89
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