On nonparametric estimation of a hedonic price function |
| |
| Authors: | Professor Harry Haupt Joachim Schnurbus Rolf Tschernig |
| |
| Affiliation: | 1. Department of Business Administration and Economics, Bielefeld University, Centre for Statistics, Department of Bielefeld, Germany;2. University of Regensburg, Regensburg, Germany |
| |
| Abstract: | Recently, using mixed data on Canadian housing, Parmeter, Henderson, and Kumbhakar (Journal of Applied Econometrics 2007; 22 : 695–699) found that a nonparametric approach for estimating a hedonic house price function is superior to formerly suggested parametric and semiparametric specifications. We carefully reanalyze these specifications for this dataset by applying a recent nonparametric specification test and simulation‐based prediction comparisons. For the case at issue our results suggest that a previously proposed parametric specification does not have to be rejected and we illustrate how nonparametric methods provide valuable insights during all modeling steps. Copyright © 2010 John Wiley & Sons, Ltd. |
| |
| Keywords: | |
|
|
