Ridge Estimators in House Valuation Models

Christian T. L. Janssen and Prem P. Talwar
Additional contact information
Christian T. L. Janssen: Department of Finance and Management Science, Faculty of Business, University of Alberta, Edmonton, Canada T6G 2G1
Prem P. Talwar: Department of Finance and Management Science, Faculty of Business, University of Alberta, Edmonton, Canada T6G 2G1

Interfaces, 1982, vol. 12, issue 4, 120-127

Abstract: Statistical models are being applied in the valuation of different types of real estate. This article discusses Ridge estimators for the valuation of single family residences in the presence of multicollinearity (ill-conditioned data). We distinguish between the prediction case , where the purpose is to estimate the selling price, and the explanation ( or control ) case , where the purpose is to infer the response in selling price from changes in regressor values, in particular property characteristics. The economic inferences from the latter ease are particularly interesting.

Keywords: marketing:; pricing (search for similar items in EconPapers)
Date: 1982
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1287/inte.12.4.120 (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:inm:orinte:v:12:y:1982:i:4:p:120-127

Access Statistics for this article

More articles in Interfaces from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().