2
$\begingroup$

I have some data for housing prices from sales for given areas and I also have data on several characteristics of these houses. I was wondering if there was a way to construct a simple housing price index using hedonic regression?

$\endgroup$
1
$\begingroup$

If you mean a housing price index by area the you could simply use area dummies and run a regression

$$ p_i = X_i^\top \beta + \mu_a + \epsilon_i$$

for the $i=1,...,N$ housing sales and then use the area dummy estimates $\hat \mu_a$ as index values.

| cite | improve this answer | |
$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.