caa a22 4500 47712996X CHVBK 20180405111702.0 cr unu---uuuuu 170330e19970101xx s 000 0 eng 10.1023/A:1007715917198 doi (NATIONALLICENCE)springer-10.1023/A:1007715917198 The Construction of Residential Housing Price Indices: A Comparison of Repeat-Sales, Hedonic-Regression, and Hybrid Approaches [Elektronische Daten] [Nancy Wallace, Richard Meese] This article examines a number of hypotheses that underpin the repeat-sales and hedonic approaches to the construction of housing price indices, as well as the practical problems associated with the implementation of either approach. We also examine a hybrid procedure that combines elements of both the repeat-sales and hedonic-regression techniques. For our sample of individual home sales in Oakland and Fremont California over an 18-year period, repeat-sales methods are subject to sample selection bias; the maintained assumption of time constancy of implicit prices of housing attributes is violated; the repeat-sales estimator is extremely sensitive to influential observations; and the usual method used to correct for heteroskedasticity in repeat-sale housing returns is inappropriate in our sample. Hedonic techniques are better suited to contend with index number problems per se, as they can accommodate changing attribute prices over time. They also appear to give rise to more reliable estimates of price indices, as unusual observations have less effect on estimated price indices. Drawbacks of the hedonic approach include the usual concern with omitted attributes, and their effect on the estimated price index. Kluwer Academic Publishers, 1997 repeat sales nationallicence hedonic models nationallicence price index estimation nationallicence housing prices nationallicence Wallace Nancy Haas School of Business, University of California, 94720-1900, Berkeley, CA aut Meese Richard Haas School of Business, University of California, 94720-1900, Berkeley, CA aut The Journal of Real Estate Finance and Economics Kluwer Academic Publishers 14/1-2(1997-01-01), 51-73 0895-5638 14:1-2<51 1997 14 11146 https://doi.org/10.1023/A:1007715917198 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1023/A:1007715917198 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Wallace Nancy Haas School of Business, University of California, 94720-1900, Berkeley, CA aut NATIONALLICENCE 700 1- Meese Richard Haas School of Business, University of California, 94720-1900, Berkeley, CA aut NATIONALLICENCE 773 0- The Journal of Real Estate Finance and Economics Kluwer Academic Publishers 14/1-2(1997-01-01), 51-73 0895-5638 14:1-2<51 1997 14 11146 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer