IDEAS home Printed from https://ideas.repec.org/p/ssb/dispap/1019.html
   My bibliography  Save this paper

Hedonic regression models for housing tax valuation

Author

Listed:

Abstract

Different types of taxation include the market value of housing or housing returns in their tax base, making it essential to obtain accurate and up-to-date assessments of property values. However, to value residential property represents a major challenge for tax administrations due to informational constraints. In the present paper we present and discuss a simple, inexpensive, and transparent procedure for assigning market value to each dwelling in Norway, based on deriving estimates from hedonic regressions. The valuations are updated yearly to reflect changes in market value. This is a novel example of using predictions obtained from regression estimates to define full-scale housing values for tax purpose. We present and discuss two iterations of the method: the initial prediction model introduced in 2010 and a refined version that would offer substantial improvements without the need for additional data collection efforts.

Suggested Citation

  • Erlend Eide Bø & Odd Erik Nygård & Thor Olav Thoresen, 2024. "Hedonic regression models for housing tax valuation," Discussion Papers 1019, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:1019
    as

    Download full text from publisher

    File URL: https://www.ssb.no/en/priser-og-prisindekser/boligpriser-og-boligprisindekser/artikler/hedonic-regression-models-for-housing-tax-valuation/_/attachment/inline/a95631b5-da52-4543-9688-15c241e15bdd:351501cc6cd68b4c9f1c8f95f658dc3ef4268fa9/DP1019corrected.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Taxation of housing; Hedonic regression; Housing valuation;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssb:dispap:1019. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: L Maasø (email available below). General contact details of provider: https://edirc.repec.org/data/ssbgvno.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.