Location, location, location: Extracting location value from house prices

Jens Kolbe, Rainer Schulz, Martin Wersing and Axel Werwatz

VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order from Verein für Socialpolitik / German Economic Association

Abstract: We propose a novel semiparametric method to extract location values from house prices. After splitting house prices into building and land components, location values are estimated with adaptive weight smoothing. The adaptive estimator requires neither strong smoothness assumptions nor local symmetry. We apply the method to house transactions from Berlin, Germany. The estimated surface of location values is highly correlated with expert-based land values and location ratings. The method can therefore be used for applications where no other location value information exists or where this information is not reliable.

JEL-codes: C14 C50 R31 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-geo and nep-ure
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https://www.econstor.eu/bitstream/10419/79732/1/VfS_2013_pid_504.pdf (application/pdf)

Related works:
Working Paper: Location, Location, Location: Extracting Location Value from House Prices (2012)
Working Paper: Location, location, location: Extracting location value from house prices (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc13:79732

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