Sample Selection Bias and Repeat-Sales Index Estimates

Posted: 15 Mar 1996

See all articles by Dean H. Gatzlaff

Dean H. Gatzlaff

Florida State University

Donald R. Haurin

Ohio State University (OSU) - Economics

Multiple version iconThere are 2 versions of this paper

Date Written: Undated

Abstract

Analysis of variations in house values among localities requires reliable house value indices. Gatzlaff and Haurin (1994) indicate that traditional hedonic value index estimates, using only information from a sample of sold homes to estimate value movements for the entire housing stock, may be subject to substantial bias. This paper extends previous work by adapting the censored sample procedure to the repeat-sales index estimation model. Using data from Dade County, Florida, a house value index constructed from a sample of homes selling more than once, rather than all houses in a locality, is found to be biased. The bias is shown to be highly correlated with changes in economic conditions.

JEL Classification: C24, R31

Suggested Citation

Gatzlaff, Dean H. and Haurin, Donald R., Sample Selection Bias and Repeat-Sales Index Estimates (Undated). Available at SSRN: https://ssrn.com/abstract=9032

Dean H. Gatzlaff (Contact Author)

Florida State University ( email )

College of Business, Center for Real Estate
821 Academic Way, Rovetta Business Bldg
Tallahassee, FL 32306-1110
United States
850-644-4071 (Phone)
850-644-4077 (Fax)

Donald R. Haurin

Ohio State University (OSU) - Economics ( email )

154 N. Oval Mall
1010G Derby Hall
Columbus, OH 43210-1172
United States
614-292-0482 (Phone)
614-292-9530 (Fax)

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