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Weighting Two Quality Indexes In Valuation Theory: Survival Function And An Alternative Technique/Ponderando Dos Índices De Calidad En Teoría De Valoración: Función De Supervivencia Y Una Técnica Alternativa

Author

Listed:
  • FRANCO NICOLÁS, M.

    () (Dpto. Estadística e Investigación Operativa, Universidad de Murcia;Campus de Espinardo, 30100 Murcia, Spain.)

  • VIVO MOLINA, J.M.

    () (Dpto. Métodos Cuantitativos para la Economía, Universidad de Murcia Campus de Espinardo, 30100 Murcia, Spain.)

Abstract

In this paper, we analyze the different weighting techniques used in the valuation theory to correct and fi t the market value of an asset with respect to the appraisals from each quality index; particularly in the valuation method of the two functions, under both independence and dependence of two quality indexes of an asset, and we expand these techniques by their survival functions. Furthermore, we propose a new tool to weight two quality indexes based on the mode values of its marginal distribution functions, which extend the variety of the possible weighted models to approach the market value. Finally, we give an application of these weighted models in one example of land pricing, and thus the assessments of the land property according to each weighted model are proposed. En este trabajo, analizamos las diferentes técnicas de ponderación utilizadas en teoría de valoración para corregir y ajustar el valor de mercado de un bien con respecto a las valoraciones con cada uno de los índices de calidad; concretamente en el método de valoración de las dos funciones, bajo independencia y dependencia de dos índices de calidad de un bien, y ampliamos estas técnicas mediante sus funciones de supervivencia. Además, proponemos una nueva herramienta para ponderar dos índices de calidad basada en los valores modales de sus funciones de distribución marginales, extendiendo la variedad de los modelos ponderados posibles para aproximar el valor de mercado. Finalmente, damos una aplicación de estos modelos ponderados en un ejemplo de tasación de tierras, proponiéndose valoraciones de la finca según cada modelo ponderado.

Suggested Citation

  • Franco Nicolás, M. & Vivo Molina, J.M., 2007. "Weighting Two Quality Indexes In Valuation Theory: Survival Function And An Alternative Technique/Ponderando Dos Índices De Calidad En Teoría De Valoración: Función De Supervivencia Y Una Técnica Alte," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 25, pages 83-106, Abril.
  • Handle: RePEc:lrk:eeaart:25_1_4
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    References listed on IDEAS

    as
    1. van Dorp J.R. & Kotz S., 2002. "The Standard Two-Sided Power Distribution and its Properties: With Applications in Financial Engineering," The American Statistician, American Statistical Association, vol. 56, pages 90-99, May.
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    More about this item

    Keywords

    Valuation method; survival function; quality index; weighted model/Método de valoración; función de supervivencia; índice de calidad; modelo ponderado.;

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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