Sample Selection Bias and Repeat-Sales Index Estimates

J. OF REAL ESTATE FINANCE AND ECONOMICS, Vol. 14 No. 1

Posted: 5 Apr 1996

See all articles by Dean H. Gatzlaff

Dean H. Gatzlaff

Florida State University

Donald R. Haurin

Ohio State University (OSU) - Economics

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Abstract

Analysis of variations in house values among localitiesrequires reliable house value indices. Gatzlaff and Haurin(1994) indicate that traditional hedonic house value indexestimates, using only information from a sample of soldhomes to estimate value movements for the entire housingstock, may be subject to substantial bias. This paperextends previous work by adapting the censored sampleprocedure to the repeat-sales index estimation model. Usingdata from Dade County Florida, a house value indexconstructed from a sample of homes selling more than once,rather than all houses in a locality, is found to bebiased. the bias is shown to be highly correlated withchanges in economic conditions.

JEL Classification: R0

Suggested Citation

Gatzlaff, Dean H. and Haurin, Donald R., Sample Selection Bias and Repeat-Sales Index Estimates. J. OF REAL ESTATE FINANCE AND ECONOMICS, Vol. 14 No. 1. Available at SSRN: https://ssrn.com/abstract=9274

Dean H. Gatzlaff

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 (Contact Author)

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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