Residential Property Price Indexes for Tokyo

Walter Diewert and Chihiro Shimizu

Economics working papers from Vancouver School of Economics

Abstract: The paper uses hedonic regression techniques in order to decompose the price of a house into land and structure components using real estate sales data for Tokyo. In order to get sensible results, a nonlinear regression model using data that covered multiple time periods was used. Collinearity between the amount of land and structure in each residential property leads to inaccurate estimates for the land and structure value of a property. This collinearity problem was solved by using exogenous information on the rate of growth of construction costs in Tokyo in order to get useful constant quality subindexes for the price of land and structures separately.

Keywords: House price indexes; land and structure components; time dummy hedonic regressions; spline functions; flexible functional forms; Fisher ideal indexes. (search for similar items in EconPapers)
JEL-codes: C2 C23 C43 D12 E31 R21 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2013-04-11, Revised 2013-04-11
References: Add references at CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: RESIDENTIAL PROPERTY PRICE INDICES FOR TOKYO (2015)
Working Paper: Residential Property Price Indexes for Tokyo (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ubc:bricol:erwin_diewert-2013-16

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