Improved price index for condominiums
2009 (English)Report (Other academic)
This paper proposes a price index construction methodology that can increase the quality ofprice index data for condominiums in Sweden. Currently, officially published market priceindexes for condominiums and houses in Sweden suffer from a number of shortcomings.Notably they do not control for quality, or they are based on dates when transfer of ownershipof the home occurs, and not the contract date. We develop a new price index that both controlsfor quality and reflect most recent price levels and changes. With access to a unique databasewe estimate alternative hedonic price indexes, and compare them both between themselves, aswell as with arithmetic mean and median price indexes. However, there is a trade-off betweencontrol of quality, access to the most recent transactions, and market coverage on one hand, andease of construction on the other hand.
Place, publisher, year, edition, pages
2009. , 28 p.
Apartment, price index, moving window regression, spatial econometrics, contract date
Economics Civil Engineering
IdentifiersURN: urn:nbn:se:kth:diva-11239OAI: oai:DiVA.org:kth-11239DiVA: diva2:248808
QC 201008102009-10-092009-10-092010-08-10Bibliographically approved