The Accuracy and Robustness of Real Estate Price Index Methods

Greg Costello, Yen Min Goh and Greg Schwann

ERES from European Real Estate Society (ERES)

Abstract: This paper re-examines the statistical properties of five different price index methods with the objective of identifying one that is most accurate and robust when estimated at frequent time intervals and/or for highly localized markets. This paper adopts the split sample technique to allow for a consistent basis upon which the price index methods are compared. The results show that: 1) when estimating price indexes, the arbitrary pooling of data across time and geography is not warranted, 2) the hedonic imputation model outperforms the alternative models on all measures of accuracy and robustness, 3) the differences in the levels of accuracy among the models are statistically significant and 4) there are significant economic disadvantages associated with using a sub-optimal price index method in decision-making.

JEL-codes: R3 (search for similar items in EconPapers)
Date: 2009-01-01
References: Add references at CitEc
Citations:

Downloads: (external link)
https://eres.architexturez.net/doc/oai-eres-id-eres2009-191 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2009_191

Access Statistics for this paper

More papers in ERES from European Real Estate Society (ERES) Contact information at EDIRC.
Bibliographic data for series maintained by Architexturez Imprints ().