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Price Indices for Austrian municipalities - Hedonic models based on Microlevel Data

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  • Sabrina-Sigrid Spiegel

    (University of Graz, Austria)

Abstract

Austrian municipalities must re-evaluate their real estate portfolios every year. The existing Austrian house price datasets (based on the Austrian land register) cannot fully fulfill these requirements due to a lack of descriptive variables. When constructing a hedonic model, it is vital to assemble a dataset as complete as possible to minimize the extent of the omitted variables problem. This paper shows how an existing micro-level dataset can be improved and extended to raise the data s explanatory power. Then these data are used to compile different temporal hedonic models for the nine regional capitals of Austria. The results show that the right choice of method is essential for smaller cities with fewer transactions. For bigger cities, with more transaction data, the choice of hedonic model is less important (with all suggested model formulations giving similar results). Thus, it is vital to consider the data structure and number of transactions when compiling indices for small regions (cities).

Suggested Citation

  • Sabrina-Sigrid Spiegel, 2022. "Price Indices for Austrian municipalities - Hedonic models based on Microlevel Data," Graz Economics Papers 2022-01, University of Graz, Department of Economics.
    • Handle: RePEc:grz:wpaper:2022-01
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    File URL: https://unipub.uni-graz.at/obvugrveroeff/download/pdf/9539783?originalFilename=true
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    References listed on IDEAS

    as
    1. Mick Silver, 2011. "House Price Indices: Does Measurement Matter?," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 12(3), pages 69-86, July.
    2. Diewert, Erwin, 2011. "Alternative Approaches to Measuring House Price Inflation," Economics working papers erwin_diewert-2011-1, Vancouver School of Economics, revised 07 Jan 2011.
    3. Robert J. Hill & Michael Scholz & Chihiro Shimizu & Miriam Steurer, 2018. "An evaluation of the methods used by European countries to compute their official house price Indices," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 500-501-5, pages 221-238.
    4. Alicia N. Rambaldi & D.S. Prasada Rao, 2013. "Econometric Modeling and Estimation of Theoretically Consistent Housing Price Indexes," CEPA Working Papers Series WP042013, School of Economics, University of Queensland, Australia.
    5. Chihiro Shimizu, 2014. "Estimation of Hedonic Single-Family House Price Function Considering Neighborhood Effect Variables," Sustainability, MDPI, vol. 6(5), pages 1-15, May.
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    More about this item

    Keywords

    housing market; house price index; hedonic regression; rolling time dummy method; average characteristics method; repricing method; stratified median.;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • E47 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Forecasting and Simulation: Models and Applications

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