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Residential Property Price Indexes for Japan: An Outline of the Japanese Official RPPI

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  • Diewert, W. Erwin
  • Nishimura , Kiyohiko
  • Shimizu, Chihiro
  • Watanabe, Tsutomu

Abstract

Fluctuations in housing prices have substantial economic impacts. Thus, it is essential to develop housing price indexes that can adequately capture housing market trends. However, construction of such indexes is very difficult due to the fact that residential properties are heterogeneous and do not remain at constant quality over time due to renovations and depreciation of the structure. In order to improve the quality of housing price statistics Eurostat published the Residential Property Price Indices Handbook in 2012. The present paper discusses alternative methods for obtaining constant quality housing price statistics and alternative data sources in the Japanese context.

Suggested Citation

  • Diewert, W. Erwin & Nishimura , Kiyohiko & Shimizu, Chihiro & Watanabe, Tsutomu, 2014. "Residential Property Price Indexes for Japan: An Outline of the Japanese Official RPPI," Economics working papers erwin_diewert-2014-17, Vancouver School of Economics, revised 27 Mar 2014.
  • Handle: RePEc:ubc:bricol:erwin_diewert-2014-17
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    File URL: http://www.economics.ubc.ca/files/2014/03/pdf_paper_erwin-diewert-14-05-RPPI.pdf
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    Keywords

    House price indexes; hedonic price indexes; repeat sales price indexes; aggregation bias; housing depreciation; land and structure components; flexibl;

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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