 The accuracy of self-reported dwelling valuationAviad Tur-Sinai, Larisa Fleishman and Dmitri Romanov Journal of Housing Economics, 2020, vol. 48, issue C Abstract: Owners’ valuations of dwelling prices are central in the construction of price indices and households’ economic behavior. We analyze the variation of the self-reported valuation bias over the distribution of dwelling sale prices, using a dataset of observations from a Household Expenditure Survey merged with the national sample of housing sale transactions by census tract. We find that self-reported estimates of dwelling values are, on average, 20% higher than the mean market prices of houses in the corresponding census tracts. Estimates reported by people who occupy dwellings in the lowest eight deciles of the price distribution are upward-biased, whereas those who live in the most expensive dwellings more typically understate the value of their homes. The self-reported valuation bias is systematically associated with owner's traits and with dwelling and neighborhood characteristics. Misspecification might be another potential explanation for that bias. The frequency of dwelling sales in the respondent's tract was found to have an effect on the self-reported valuation bias. Keywords: Sale price; Subjective asset valuation; Census tract; Hedonic price model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jhouse:v:48:y:2020:i:c:s1051137717300463 DOI: 10.1016/j.jhe.2019.101660 Access Statistics for this article Journal of Housing Economics is currently edited by H. O. Pollakowski More articles in Journal of Housing Economics from Elsevier |
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