A Conceptual Framework for Commercial Property Price Indexes

Walter Diewert and Chihiro Shimizu

Economics working papers from Vancouver School of Economics

Abstract: The paper studies the problems associated with the construction of price indexes for commercial properties that could be used in the System of National Accounts. Property price indexes are required for the stocks of commercial properties in the Balance Sheets of the country and related price indexes for the land and structure components of a commercial property are required in the Income Accounts of the country if the Multifactor Productivity of the Commercial Property Industry is calculated as part of the System of National accounts. The paper suggests a variant of the capitalization of the Net Operating Income approach to the construction of property price indexes and uses the one hoss shay or light bulb model of depreciation as a model of depreciation for the structure component of a commercial property.

Keywords: Commercial property price indexes; Net Operating Income; discounted cash flow; System of National Accounts; Balance Sheets; methods of depreciation; l (search for similar items in EconPapers)
JEL-codes: C2 C23 C43 D12 E31 R21 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2013-10-09, Revised 2013-10-09
New Economics Papers: this item is included in nep-acc
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Citations: View citations in EconPapers (9)

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Related works:
Working Paper: A Conceptual Framework for Commercial Property Price Indexes (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ubc:bricol:erwin_diewert-2013-44

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