Impact of the Regularization of Regression Models on the Results of the Mass Valuation of Real Estate
Gnat Sebastian ()
Additional contact information
Gnat Sebastian: University of Szczecin, Institute of Economics and Finance, Mickiewicza 64, 71-101Szczecin, Poland
Folia Oeconomica Stetinensia, 2020, vol. 20, issue 1, 163-176
Research background: Mass appraisal is a process in which multiple properties are appraised simultaneously, with a uniform approach. One of the tools that can be used in this area are multiple regression models. In the valuation of real estate features are often described on an ordinal or nominal scale. Replacing them with dummy variables with an insufficient number of observations leads to multicollinearity. On the other hand, there is a risk of overfitting the model. One of the ways to eliminate or weaken these phenomena is to introduce regularization based on a model’s penalization for the high values of its weights.
Keywords: property valuation; market analysis; regularization (search for similar items in EconPapers)
JEL-codes: C10 R30 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:vrs:foeste:v:20:y:2020:i:1:p:163-176:n:9
Access Statistics for this article
Folia Oeconomica Stetinensia is currently edited by Waldemar Tarczyński
More articles in Folia Oeconomica Stetinensia from Sciendo
Bibliographic data for series maintained by Peter Golla ().