Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/25261
Authors: 
Schulz, Rainer
Staiber, Markus
Wersing, Martin
Werwatz, Axel
Year of Publication: 
2008
Series/Report no.: 
SFB 649 discussion paper 2008,019
Abstract: 
By using a unique data set of single-family house transactions, we examine the accuracy of the cost and sales comparison approach over different forecast horizons. We find that sales comparison values provide better long-term forecasts than cost values if the economic loss function is symmetric. A weighted average of both sales comparison value and cost value can reduce this loss even further. If the economic loss function is asymmetric, however, cost values might provide better long-term forecasts.
Subjects: 
prediction accuracy
mortgage underwriting
risk management
JEL: 
C52
C53
Document Type: 
Working Paper

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