Managing hedonic housing price indexes: The French experience

Using Multiple Criteria Decision Analysis (Mcda) to Assist in Estimating Residential Housing Values

“…Quigley 1995;Englund et al 1998;Bin 2004;Smith 2006;guo et al 2007;gouriéroux, laferrère 2009;Hjalmarsson, E., Hjalmarsson R. 2009;Dorsey et al 2010;Pace et al 2000;Schulz, Werwatz 2011;Wu et al 2011). Hedonic modeling is, perhaps, the most widely used mass appraisal technique in estimating residential real estate market values (cf.…”

“…Criticism generally has been: (1) offers limited guidance regarding the relationship among housing prices and attributes, with "potentially serious consequences of functional misspecification" (Bin 2004: 69); (2) being limited by a lack of data on property attributes (according to Dorsey et al (2010: 91), " […] hedonic indexes can potentially overcome the limitations of the median price and repeat-sales indexes but are seldom constructed because of a lack of data"); (3) depending not only on previously observed and recorded characteristics of properties but also on previously observed and recorded prices (Quigley 2006;gouriéroux, laferrère 2009); (4) estimating coefficients that may suffer from omitted variable bias (Hjalmarsson, E.;Hjalmarsson R. 2009); and (5) "not depending on the demand for housing in the market, but only on characteristics of the dwelling and its environment" (Ettema 2011: 1) (for further discussion, see also Peterson, Flanagan 2009;Shin et al 2011).…”

A New Perspective on the Relationship between House Prices and Income

“…[see for example Witte, Sumka and Erekson (1979), Linneman (1980), Malpezzi, Chun and Green (1998), Crone, Nakamura and Voith (2004), Stevenson (2004), Gouriéroux, C. and A. Laferrère (2006) and Hill and Melser (2008)]. Our model implies that the concept of a shadow price may not be particularly meaningful in this context since the impact on price of an improvement in a characteristic may be highly sensitive to the initial position of a house in the ordinal ranking, and the shape of the income distribution.…”

Measuring a boom and bust: The Sydney housing market 2001–2006

“…15 The APM data set is privately constructed. Such a pattern is probably less likely to be observed in a public data set constructed directly from officially recorded transactions, such as that used to construct the CSN/ INSEE index in France (see Gouriéroux and Laferrère (2009). 16 Determining which sample is most representative of the housing stock is another matter (again see Haurin, 1997, 1998).…”

“…More recently, a third UK hedonic index -the Communities and Local Government (CLG) index -was developed by the Office of National Statistics (ONS) (see Acadametrics, 2009 for a discussion of the various UK indexes). Conseil Supérieur du Notariat (CSN) and INSEE (the national statistical office of France) compute hedonic indexes for regions in France (see Gouriéroux and Laferrère, 2009). Statistics Finland also computes a hedonic index (see Saarnio, 2006), while RPData-Rismark computes hedonic indexes for cities in Australia.…”