Abstract
AbstractSurveys regularly ask home-owners to guess what their property might be worth in the current housing market. We develop suitable statistical techniques to construct hedonic and repeat-sales style house price indices from these owner-estimated values (OEVs). The resulting series are then linked to a large set of quality-adjusted residential property price indices estimated from transaction data allowing us to perform a variety of convergent validity tests. Based on results for 20 countries, several decades and different OEV elicitation techniques, we conclude that the“wisdom of the home-owner crowd”is sufficient to study objective house price dynamics. Yet, surveys fail to accurately measure house price levels.
Funder
Fonds National de la Recherche Luxembourg
Vienna University of Economics and Business
Publisher
Springer Science and Business Media LLC
Subject
Urban Studies,Economics and Econometrics,Finance,Accounting
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