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The reliability of self-reported home values in a developing country context

Author

Listed:
  • Climent Quintana

    (Universidad de Alicante)

  • Marco González

    (Princeton University)

Abstract

We analyze the reliability of homeowners¿ estimates of the value of their houses, in a household survey (of poor suburbs) of a developing country. We show that non-response to the home value question by the owner is uncorrelated with the appraised value of the house and other demographic characteristics of the respondent. We also document that homeowners with long tenure largely overestimate the value of their home. Moreover, both the bias and the lack of precision in homeowners¿ estimates are correlated with tenure, but not with socioeconomic characteristics. However, we also show that self-reported home values from short-tenure homeowners can be used to obtain unbiased and precise estimates of the average house value at the census tract level.

Suggested Citation

  • Climent Quintana & Marco González, 2008. "The reliability of self-reported home values in a developing country context," Working Papers. Serie AD 2008-18, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasad:2008-18
    as

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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Mani Nepal, "undated". "Where gathering firewood matters: Proximity and forest management effects in hedonic pricing models for rural Nepal," Working papers 113, The South Asian Network for Development and Environmental Economics.
    2. Gonzalez-Navarro, Marco & Quintana-Domeque, Climent, 2010. "Urban Infrastructure and Economic Development: Experimental Evidence from Street Pavement," IZA Discussion Papers 5346, Institute for the Study of Labor (IZA).
    3. Tony Addison & Yukka Pirttilä & Finn Tarp & Carlos Felipe Balcázar & Lidia Ceriani & Sergio Olivieri & Marco Ranzani, 2017. "Rent-Imputation for Welfare Measurement: A Review of Methodologies and Empirical Findings," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(4), pages 881-898, December.
    4. Gabriele Galati & Federica Teppa & Rob Alessie, 2013. "Heterogeneity in house price dynamics," DNB Working Papers 371, Netherlands Central Bank, Research Department.
    5. Marco Gonzalez-Navarro & Climent Quintana-Domeque, 2016. "Paving Streets for the Poor: Experimental Analysis of Infrastructure Effects," The Review of Economics and Statistics, MIT Press, vol. 98(2), pages 254-267, May.
    6. Carin van der Cruijsen & David-Jan Jansen & Maarten van Rooij, 2014. "The rose-colored glasses of homeowners," DNB Working Papers 421, Netherlands Central Bank, Research Department.
    7. Gabriele Galati & Federica Teppa & Rob Alessie, 2011. "Macro and micro drivers of house price dynamics: An application to Dutch data," DNB Working Papers 288, Netherlands Central Bank, Research Department.
    8. Sumila Gulyani & Ellen M. Bassett & Debabrata Talukdar, 2012. "Living Conditions, Rents, and Their Determinants in the Slums of Nairobi and Dakar," Land Economics, University of Wisconsin Press, vol. 88(2), pages 251-274.
    9. Monkkonen, Paavo, 2016. "Where do Property Rights Matter More? Explaining the Variation in Demand for Property Titles across Cities in Mexico," World Development, Elsevier, vol. 88(C), pages 67-78.

    More about this item

    Keywords

    bias; inaccuracy; housing prices; owners¿ estimates; appraised values.;

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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