How to Better Measure Hedonic Residential Property Price Indexes

Download or read book How to Better Measure Hedonic Residential Property Price Indexes written by Mick Silver and published by International Monetary Fund. This book was released on 2016-11-16 with total page 89 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hedonic regressions are used for property price index measurement to control for changes in the quality-mix of properties transacted. The paper consolidates the hedonic time dummy approach, characteristics approach, and imputation approaches. A practical hedonic methodology is proposed that (i) is weighted at a basic level; (ii) has a new (quasi-) superlative form and thus mitigates substitution bias; (iii) is suitable for sparse data in thin markets; and (iv) only requires the periodic estimation of hedonic regressions for reference periods and is not subject to the vagrancies of misspecification and estimation issues.