Comparing Interval Restricted Estimators in Hedonic Pricing / Ein Vergleich intervallrestringierter Schätzverfahren in der hedonischen Preismessung

2000 ◽  
Vol 220 (5) ◽  
Author(s):  
Henning Knautz
Keyword(s):  
Monte Carlo ◽  
Bayesian Approach ◽  
Housing Prices ◽  
Hedonic Pricing ◽  
Monte Carlo Experiment ◽  
Constrained Estimation ◽  
Pricing Models ◽  
Interval Constraints ◽  
Using Data ◽  
Fuzzy Interval

SummaryIn hedonic pricing models there is often prior knowledge available which has the form of interval constraints on the unknown coefficients. These are stemming for example from considerations of submarkets for the characteristics involved. In this article we briefly discuss some well known estimators that allow for incorporation of this knowledge. Additionally we introduce two new promising approaches for the same purpose: a modified Bayesian approach and a method applying fuzzy interval constraints. Using data on housing prices we present the results of a Monte Carlo experiment in which these estimators are compared. It turns out that constrained estimation is promising especially in the situation of high multicollinearity and moderate R2 which is typical for hedonic pricing models. We illustrate that estimates and confidence intervals for the unknown coefficients can be improved substantially compared with the conventional unrestricted estimation.

The valuation of intangibles for hotel investments

2004 ◽  
Vol 22 (5) ◽  
pp. 410-423 ◽  
Author(s):  
Sherif Roubi
Keyword(s):  
Hedonic Pricing ◽  
Total Asset ◽  
Hedonic Price ◽  
Pricing Models ◽  
Physical Location ◽  
Ex Post ◽  
Asset Value ◽  
Ex Ante ◽  
Using Data

Reviews the literature on the valuation of intangibles for hotel investments. Contrary to the sceptical outlook portrayed in the literature, demonstrates the effectiveness of ex‐post models and hedonic pricing models (HPM) as an objective and robust tool in separating and measuring intangible hotel property and decomposing total asset value. Develops two HPM models using data on 50 hotel properties appraised in 1997. All hotels are owned and managed by the same hotel company and affiliated with the same brand. Some 58 per cent of the properties are freeholds and the rest are leaseholds. Estimates the hedonic price equations by regressing appraised values on physical, location and economic characteristics of the properties. Results confirm the effectiveness of HPM and in fact its relative superiority to traditional ex‐ante modelling in measuring and decomposing intangible property. As expected at the outset, comparable‐leases and excess‐profits‐based models produced similar results.

scholarly journals Do Prior Type and Sample Size have Effect on Mixtures of Normal? The Monte Carlo evidence

2021 ◽  
pp. 60-71
Author(s):  
Ojo O. Oluwadare ◽  
Enesi O. Lateifat ◽  
Owonipa R. Oluremi
Keyword(s):  
Monte Carlo ◽  
Sample Size ◽  
Bayesian Approach ◽  
Heterogeneous Data ◽  
Reliable Estimate ◽  
Monte Carlo Experiment ◽  
Finite Mixtures ◽  
Normal Mixtures ◽  
Large Sample ◽  
Informative Prior

Overtime finite mixtures of Normal in regression have gained popularity and also shown to be useful in modelling heterogeneous data. This study examines the effects of prior and sample size in regression mixtures of Normal models with Bayesian approach. Monte Carlo experiment was carried out on the Normal mixtures model in order to examine the strength of priors and also to know the suitable sample size to produce stable results. Results obtained from the experiment indicate that an informative prior gives a reliable estimate than non-informative prior while large sample sizes maybe needed to obtain stable results.

What drives housing prices, rent and new construction in China

2017 ◽  
Vol 10 (5) ◽  
pp. 662-686
Author(s):  
Dimitrios Staikos ◽  
Wenjun Xue
Keyword(s):  
Real Estate ◽  
Empirical Test ◽  
Housing Prices ◽  
Panel Cointegration ◽  
Real Estate Market ◽  
Estimation Methods ◽  
Content Type ◽  
New Construction ◽  
Using Data ◽  
First Time

Purpose With this paper, the authors aim to investigate the drivers behind three of the most important aspects of the Chinese real estate market, housing prices, housing rent and new construction. At the same time, the authors perform a comprehensive empirical test of the popular 4-quadrant model by Wheaton and DiPasquale. Design/methodology/approach In this paper, the authors utilize panel cointegration estimation methods and data from 35 Chinese metropolitan areas. Findings The results indicate that the 4-quadrant model is well suited to explain the determinants of housing prices. However, the same is not true regarding housing rent and new construction suggesting a more complex theoretical framework may be required for a well-rounded explanation of real estate markets. Originality/value It is the first time that panel data are used to estimate rent and new construction for China. Also, it is the first time a comprehensive test of the Wheaton and DiPasquale 4-quadrant model is performed using data from China.

The Composition of Hedonic Pricing Models

2005 ◽  
Vol 13 (1) ◽  
pp. 1-44 ◽  
Author(s):  
Stacy Sirmans ◽  
David Macpherson ◽  
Emily Zietz
Keyword(s):  
Hedonic Pricing ◽  
Pricing Models

International Real Estate Review

2006 ◽  
Vol 9 (1) ◽  
pp. 112-131
Author(s):  
Steven Plaut ◽  
◽  
Egita Uzulena ◽  
Keyword(s):  
Architectural Design ◽  
Explanatory Variable ◽  
Housing Stock ◽  
Housing Markets ◽  
Hedonic Pricing ◽  
Housing Values ◽  
Pricing Models ◽  
Explanatory Variables ◽  
Housing Value ◽  
Physical Features

Architectural design has generally not been included in estimations of hedonic pricing models and the reason is no doubt the difficulty in capturing it in a usable measurement variable. It is usually too idiosyncratic and heterogeneous to “sum up” easily and introduce as an explanatory variable. However, in some housing markets, architectural design consists of a limited number of standardized “prototypes”, which can then be used as explanatory variables in hedonic estimations. Such is the case for Riga, Latvia, where almost the entire housing stock fits into about a score of fairly standardized architectural design types. This paper is an empirical analysis of the Riga housing market, which only became a “market” in a meaningful sense after the collapse of the Soviet regime in Latvia. The paper analyzes a set of about 3500 transactions, all from recent years. We estimate the elasticity of housing value with respect to size of housing units and some other physical features, and the value of the different architectural designs, controlling for location. This is one of the first hedonic or microeconomic analyses of housing values in any post-Soviet transitional economy.

scholarly journals The Decay of Disease Association with Declining Linkage Disequilibrium: A Fine Mapping Theorem

2016 ◽  
Author(s):  
Mehdi Maadooliat ◽  
Naveen K. Bansal ◽  
Jiblal Upadhya ◽  
Manzur R. Farazi ◽  
Zhan Ye ◽  
...  
Keyword(s):  
Monte Carlo ◽  
Linkage Disequilibrium ◽  
Fine Mapping ◽  
Disease Model ◽  
Disease Association ◽  
Simple Relationship ◽  
Locus System ◽  
Using Data ◽  
Relationship Of ◽  
The Relationship

AbstractSeveral important and fundamental aspects of disease genetics models have yet to be described. One such property is the relationship of disease association statistics at a marker site closely linked to a disease causing site. A complete description of this two-locus system is of particular importance to experimental efforts to fine map association signals for complex diseases. Here, we present a simple relationship between disease association statistics and the decline of linkage disequilibrium from a causal site. A complete derivation of this relationship from a general disease model is shown for very large sample sizes. Quite interestingly, this relationship holds across all modes of inheritance. Extensive Monte Carlo simulations using a disease genetics model applied to chromosomes subjected to a standard model of recombination are employed to better understand the variation around this fine mapping theorem due to sampling effects. We also use this relationship to provide a framework for estimating properties of a non-interrogated causal site using data at closely linked markers. We anticipate that understanding the patterns of disease association decay with declining linkage disequilibrium from a causal site will enable more powerful fine mapping methods.

scholarly journals Artificial Intelligence (AI) techniques to analyze the determinants attributes in housing prices

2016 ◽  
Vol 19 (58) ◽  
pp. 23 ◽  
Author(s):  
Julia M. Núñez Tabale ◽  
Francisco J. Rey Carmona ◽  
José Mª Caridad y Ocerin
Keyword(s):  
Artificial Intelligence ◽  
Neural Networks ◽  
Explanatory Variable ◽  
Housing Prices ◽  
Good Alternative ◽  
Marginal Prices ◽  
Using Data ◽  
Econometric Approach ◽  
Hedonic Approach

The econometric approach to obtain the value of a property began with hedonic modelling, which were based on a set of property attributes, internal or external, associated to each particular dwelling. The final sale value can be estimated, and also the marginal prices of each exogenous explanatory variable. A good alternative to the hedonic approach is based on several Artificial Intelligence (AI) techniques, such as artificial neural networks (ANN), these tend to be more precise. Both methodologies are compared, and a case study is developed using data from Seville, the larger town in the South of Spain.

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