Robust Repeat Sales Indexes

Steven C. Bourassa, Eva Cantoni, Martin Hoesli

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

Using single-family sales data for Louisville, Kentucky, we show the benefits of applying robust methods to down-weight problematic transactions in a repeat sales context. Robust estimators reduce the influence of outliers in repeat sales price changes that are due to data entry errors, quality changes or nonmarket transactions. In addition to comparing conventional and robust indexes, we also use simulated data, where the correct index is known, to show that robust methods control for the impacts of contaminated data. Finally, we demonstrate that robust methods reduce the magnitude and volatility of index revisions.
Original languageEnglish
Pages (from-to)517-541
Number of pages25
JournalReal Estate Economics
Volume41
Issue number3
Early online date19 Jul 2013
DOIs
Publication statusPublished - 2013

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Repeat-sales index
Repeat sales
Robust estimators
Price changes
Outliers

Cite this

Robust Repeat Sales Indexes. / Bourassa, Steven C.; Cantoni, Eva; Hoesli, Martin.

In: Real Estate Economics, Vol. 41, No. 3, 2013, p. 517-541.

Research output: Contribution to journalArticle

Bourassa, SC, Cantoni, E & Hoesli, M 2013, 'Robust Repeat Sales Indexes', Real Estate Economics, vol. 41, no. 3, pp. 517-541. https://doi.org/10.1111/reec.12013
Bourassa, Steven C. ; Cantoni, Eva ; Hoesli, Martin. / Robust Repeat Sales Indexes. In: Real Estate Economics. 2013 ; Vol. 41, No. 3. pp. 517-541.
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