A statistical model for predicting individual house prices and constructing a house price index is proposed utilizing information regarding sale price, time of sale, and location (ZIP code). This model is composed of a fixed time effect and a random ZIP (postal) code effect combined with an autoregressive component. The former two components are applied to all home sales while the latter is app...

This paper investigates the effects of housing price risk on housing choices over the life-cycle. Housing price risk can be substantial but, unlike other risky assets which people can avoid, the fact that most people will eventually own their home creates an insurance demand for housing assets early in life. Our contribution is to focus on the importance of home ownership and housing wealth as ...

This paper develops and applies a method for producing constant quality rent indexes and inflation estimates for different segments of the rental housing stock. In each of the five contrasting metropolitan areas, rent inflation since the late 1980s is found to have varied by market segment. In some metro areas, rental prices have risen most rapidly in the bottom third of the rent distribution, ...

in literature about inflation targeting, main factor is interest rate. in new surveys, price of some assets as housing is important in inflation targeting. iran inflation targeting is based on money changes and is not based on interest rate and housing price. in this paper, we want to survey problems of wrong policy of iran policy makers. we reveal that, using rate of deposit profit and growth ...

Overview The decision whether and how to adjust poverty thresholds for area differences in prices depends, among other things, on the reasons that prices differ across metropolitan areas and what one believes a threshold ought to measure. 1 If one starts with the premise that a poverty threshold ought to provide the same purchasing power across markets; that is, enable one to buy the same bundl...

This paper contributes to the literature on the sale price appraisal ratio (SPAR) as an alternative house price index methodology. Housing market transaction data for 12 cities or districts in New Zealand for the period 1994 – 2004 is utilised to test the effect of measurement errors in assessed values on index accuracy and temporal aggregation on index stability. The main findings are: 1) temp...