DOES CONTROLLING FOR NEIGHBOURHOOD QUALITY MATTER MORE FOR DIFFERENT TYPES OF HOUSE

David Duffy

Economics Department Working Paper Series from Department of Economics, National University of Ireland - Maynooth

Abstract: The inclusion of neighbourhood quality variables has been recognised as reducing the bias in house price indices and increasing the explanatory power of regression based hedonic indices. The ability to identify the type of purchaser is used in this paper to test the importance of neighbourhood quality variables for a first-time or second-time buyer. This paper includes the physical location of the house and neighbourhood characteristics using small area population statistics from the 1996 Census of Population in Ireland. The results confirm for the Dublin market the experience of the US and UK literature that physical and neighbourhood location influence price. The paper also shows that neighbourhood quality is more important for the first time buyer. While some tentative explanations are offered as to why this is the case this finding is worthy of further investigation.

Keywords: house price indices; hedonic models; first-time buyers; second-time buyers; bias; neighbourhood quality (search for similar items in EconPapers)
Pages: 30 pages
Date: 2001-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://repec.maynoothuniversity.ie/mayecw-files/N1091001.pdf (application/pdf)

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:may:mayecw:n1091001

Access Statistics for this paper

More papers in Economics Department Working Paper Series from Department of Economics, National University of Ireland - Maynooth Contact information at EDIRC.
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).