Hedonic models of real property sales transactions have long been used for a variety of purposes. Two important uses are in mass appraisal valuation and sales price index development. The sales price index is a prominent statistic in a number of public and private settings, and sales price index models must take into account date of sale. Mass appraisers face the same issue; they must account for changing market dynamics within their model structures. Rather than providing a full review of all such techniques, this paper examines a relatively recent method described in the context of price index studies. This study provides an evaluation of the Fourier expansion in a hedonic model in which predictive accuracy and model transparency are of paramount importance.
Mass appraisal techniques - Models
Borst, R. A. (2008). Evaluation of the Fourier transformation for modeling time trends in a hedonic model. Journal of Property Tax Assessment & Administration, 5(4), 33-40. Retrieved from https://researchexchange.iaao.org/jptaa/vol5/iss4/3