Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/227605
Authors: 
Hinrichs, Nils
Kolbe, Jens
Werwatz, Axel
Year of Publication: 
2020
Series/Report no.: 
FORLand-Working Paper No. 22 (2020)
Abstract: 
In this paper, we apply Ridge Regression, the Lasso and the Elastic Net to a rich and reliable data set of condominiums sold in Berlin, Germany, between 1996 and 2013. We their predictive performance in a rolling window design to a simple linear OLS procedure. Our results suggest that Ridge Regression, the Lasso and the Elastic Net show potential as AVM procedures but need to be handled with care because of their uneven prediction performance. At least in our application, these procedures are not the "automated" solution to Automated Valuation Modeling that they may seem to be.
Subjects: 
Automated valuation
Machine learning
Elastic Net
Forecastperformance
JEL: 
R31
C14
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/4.0/
Document Type: 
Working Paper

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