Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/79620
Authors: 
Kolbe, Jens
Schulz, Rainer
Wersing, Martin
Werwatz, Axel
Year of Publication: 
2012
Series/Report no.: 
SFB 649 Discussion Paper 2012-040
Abstract: 
The price for a single-family house depends both on the characteristics of the building and on its location. We propose a novel semiparametric method to extract location values from house prices. After splitting house prices into building and land components, location values are estimated with adaptive weight smoothing. The adaptive estimator requires neither strong smoothness assumptions nor local symmetry. We apply the method to house transactions from Berlin, Germany. The estimated surface of location values is highly correlated with expert-based land values and location ratings. The semiparametric method can therefore be used for applications where no other location value information exists or where this information is not reliable.
Subjects: 
location value
adaptive weight smoothing
spatial modeling
JEL: 
R31
C14
Document Type: 
Working Paper

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