Economics, Econometrics and Finance
9 years ago
New housing price prediction model leads to more accurate affordability ratios.
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Paper Summary
Accurately predicting changes in housing prices is crucial for government policies and financial decisions. This study compared different ways of estimating price changes using econometric models. The researchers found that using a smoothing method to estimate the model resulted in more accurate predictions of price changes compared to other methods. This means that the Hedonic Imputed price indices based on smoothing methods provide a better reflection of actual price changes in the housing market.