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| Hedonic Estimates of Regional Constant
Quality House Prices Author: Marvin L. Wolverton and Jimmy Senteza Start Page: 235 Abstract: It is has been shown
that regional housing price indexes reported by the National Association of Realtors (NAR)
misstate price change over time due to failure to control for variation in housing
quality. However, the erroneous assumption that implicit housing characteristic prices are
invariant across regions of the United States may also bias regional constant quality
hedonic price indexes. This study shows that housing characteristic prices derived from
NAR data do vary significantly by region. It then compares regional price indexes, which
do and do not control for regional variation in housing characteristic prices, to
demonstrate the biasing effect. |
