A Connection between Paired Data Analysis and Regression Analysis for Estimating Sales Adjustments

Joseph B. Lipscomb () and J. Brian Gray ()
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Joseph B. Lipscomb: M.J. Neeley School of Business Texas Christian University Forth Worth, Texas 76129, http://www.neeley.tcu.edu/
J. Brian Gray: Department of Management Science and Statistics University of Alabama Tuscaloosa, Alabama 35487, http://www.cba.ua.edu/cbasta.html

Journal of Real Estate Research, 1995, vol. 10, issue 2, 175-184

Abstract: The two methods most often recommended for obtaining market-derived adjustments utilized in the sales comparison approach to appraisal are Paired Data Analysis and Multiple Regression Analysis. These approaches are viewed as competing alternatives, with advocates and detractors for each. The main purpose of this paper is to demonstrate that these two alternatives to estimating sales adjustments are equivalent under certain circumstances. This point of equivalence may prove to be a useful starting place for improving our understanding of the differences between and similarities of the two methods. After explaining the data requirements of each method, we provide a set of sufficient conditions under which the two methods produce identical adjustment estimates. We finish with a discussion ofrelative advantages and disadvantages of these two methods in estimating sale comparison adjustments.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 1995
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Citations: View citations in EconPapers (3)

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