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Publication Detailed Description
Convenient links for the estimation of hedonic price indexes: the case of unique, infrequently traded assets
Journal Title
Statistica Neerlandica
Year (definitive publication)
2014
Language
English
Country
United States of America
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Abstract
Hedonic methods are a prominent approach in the construction of quality-adjusted price indexes. This paper shows that the process of computing such indexes is substantially simplified if arithmetic (geometric) price indexes are computed based on exponential (log-linear) hedonic functions estimated by the Poisson pseudo-maximum likelihood (ordinary least squares) method. A Monte Carlo simulation study based on housing data illustrates the convenience of the links identified and the very attractive properties of the Poisson estimator in the hedonic framework.
Acknowledgements
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Keywords
Hedonic price indexes,Quality adjustment,Retransformation,exponential regression,House prices,Poisson pseudo-maximum likelihood
Fields of Science and Technology Classification
- Mathematics - Natural Sciences
