Valuation of housing, Mass appraisal techniques, Housing market - models
A comparison of additive, multiplicative, and nonlinear (hybrid) models for single-family residential properties revealed that all three produced excellent results, with the best results obtained with the multiplicative model using location value response surface analysis. However, the hybrid model, which includes both additive and multiplicative variables, offers a better representation of appraisal principles developed through years of experience, identifies major components of value, and is easier to explain.
This article is based on a presentation at the 6th annual Integrating GIS & CAMA Conference in April 2002.
O'Connor, Patrick M.
"Comparison of three residential regression models: Additive, multiplicative, and nonlinear,"
Assessment Journal: Vol. 9:
4, Article 3.
Available at: https://researchexchange.iaao.org/assessment_journal/vol9/iss4/3