Heteroscedasticity in hedonic house price models
This paper extends the work of Goodman and Thibodeau which examines heteroscedasticity in hedonic house price models. It investigates whether heteroscedasticity is related to other factors as well as age, since correcting for only one factor when several are involved can worsen the estimates. A detailed specification is used for the hedonic modelling since omitted variables can give the appearance of heteroscedasticity. The paper uses data from over 1400 sales in Stoke-on-Trent in 1994 and finds heteroscedasticity related to both age and the external area of the property. It is shown that this was not due to outliers in the data. Use of estimated generalized least squares is shown to remove the heteroscedasticity. The estimates provided by this technique are shown to give forecast errors that may have a smaller standard deviation than ordinary least squares estimates.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 17 (2000)
Issue (Month): 2 (January)
|Contact details of provider:|| Web page: http://www.tandfonline.com/RJPR20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RJPR20|
When requesting a correction, please mention this item's handle: RePEc:taf:jpropr:v:17:y:2000:i:2:p:93-108. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.