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Resampling Techniques for Real Estate Appraisals: Testing the Bootstrap Approach

Author

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  • Vincenzo Del Giudice

    (University of Naples “Federico II”, Department of Industrial Engineering, Piazzale Vincenzo Tecchio 80, 80125 Naples, Italy)

  • Francesca Salvo

    (University of Calabria, Department of Engineering for the Environment and the Territory and Chemical Engineering, Via Pietro Bucci Cubo 46b, 87036 Rende, Italy)

  • Pierfrancesco De Paola

    (University of Naples “Federico II”, Department of Industrial Engineering, Piazzale Vincenzo Tecchio 80, 80125 Naples, Italy)

Abstract

Applied to real estate markets analysis, the resampling methods aim to contribute to the knowledge growth of real estate market dynamics, overcoming the issues related to the data scarcity and operational limits of traditional statistical theory. Among resampling methods, the Bootstrap technique appears to be the most suitable for the interpretation of real estate phenomena. In this study, for residential properties located in Cosenza (Calabria Region, Italy), a Bootstrap approach has been used in order to determine the marginal prices of the real estate characteristics detected, comparing the results with those obtainable with a traditional Multiple Regression Analysis.

Suggested Citation

  • Vincenzo Del Giudice & Francesca Salvo & Pierfrancesco De Paola, 2018. "Resampling Techniques for Real Estate Appraisals: Testing the Bootstrap Approach," Sustainability, MDPI, vol. 10(9), pages 1-16, August.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:9:p:3085-:d:166578
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    References listed on IDEAS

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    5. James L. Kuhle & Josef D. Moorehead, 1990. "Applying the Bootstrap Technique to Real Estate Appraisal: An Empirical Analysis," Journal of Real Estate Research, American Real Estate Society, vol. 5(1), pages 33-40.
    6. Su Chi-Wei & Xiao-Cui Yin & Ran Tao & Haigang Zhou, 2018. "Are housing prices improving GDP or vice versa? A cross-regional study of China," Applied Economics, Taylor & Francis Journals, vol. 50(29), pages 3171-3184, June.
    7. Vincenzo Del Giudice & Pierfrancesco De Paola & Fabiana Forte & Benedetto Manganelli, 2017. "Real Estate Appraisals with Bayesian Approach and Markov Chain Hybrid Monte Carlo Method: An Application to a Central Urban Area of Naples," Sustainability, MDPI, vol. 9(11), pages 1-17, November.
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    Cited by:

    1. Alessia Mangialardo & Ezio Micelli & Federica Saccani, 2018. "Does Sustainability Affect Real Estate Market Values? Empirical Evidence from the Office Buildings Market in Milan (Italy)," Sustainability, MDPI, vol. 11(1), pages 1-14, December.
    2. Antonio Nesticò & Shuquan He & Gianluigi De Mare & Renato Benintendi & Gabriella Maselli, 2018. "The ALARP Principle in the Cost-Benefit Analysis for the Acceptability of Investment Risk," Sustainability, MDPI, vol. 10(12), pages 1-22, December.
    3. Vincenzo Del Giudice & Pierfrancesco De Paola & Torrieri Francesca & Peter J. Nijkamp & Aviad Shapira, 2019. "Real Estate Investment Choices and Decision Support Systems," Sustainability, MDPI, vol. 11(11), pages 1-18, June.

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