Identifying Berlin’s land value map using adaptive weights smoothing

Jens Kolbe, Rainer Schulz, Martin Wersing, Axel Werwatz (Corresponding Author)

    Research output: Contribution to journalArticlepeer-review

    10 Citations (Scopus)
    8 Downloads (Pure)

    Abstract

    We use adaptive weights smoothing (AWS) of Polzehl and Spokoiny (J R Stat Soc Ser B 62:335–354, 2000; Ann Stat 31:30–57, 2003; Probab Theory Relat Fields 135:335–362, 2006) to estimate a map of land values for Berlin, Germany. Our data are prices of undeveloped land that was transacted between 1996 and 2009. Even though the observed land price is an indicator of the respective land value, it is influenced by transaction noise. The iterative AWS applies piecewise constant regression to reduce this noise and tests at each location for constancy at the margin. If not rejected, further observations are included in the local regression. The estimated land value map conforms overall well with expert-based land values. Our application suggests that the transparent AWS could prove a useful tool for researchers and real estate practitioners alike.
    Original languageEnglish
    Pages (from-to)767-790
    Number of pages24
    JournalComputational Statistics
    Volume30
    Early online date25 Feb 2015
    DOIs
    Publication statusPublished - Sept 2015

    Bibliographical note

    Acknowledgments
    We have benefited from comments received at the Applicable Semiparametrics Conferencein Berlin 2013 and from two anonymous referees. Financial support from the Deutsche Forschungsgemeinschaft, CRC 649 Economic Risk, is gratefully acknowledged. The usual disclaimer applies

    Keywords

    • land value
    • adaptive weight smoothing
    • spatial modelling

    Fingerprint

    Dive into the research topics of 'Identifying Berlin’s land value map using adaptive weights smoothing'. Together they form a unique fingerprint.

    Cite this