Multicollinearity and Reduced-Form Price Equations For Residential Markets: An Evaluation of Alternative Estimation Methods
One of the problems that has plagued researchers in their estimation of reduced-form price equations for specific housing markets has been multicollinearity-the lack of statistical independence of the explanatory variables. This paper evaluates the suitability for structural analysis and prediction of stepwise regression and principal components regression as alternatives to the standard regression model in the estimation of equations with interdependent data. In general, the results of this study indicate that under conditions of multicollinearity principal components regression is the superior estimation technique. Copyright American Real Estate and Urban Economics Association.
Year of publication: |
1978
|
---|---|
Authors: | Gau, George W. ; Kohlhepp, Daniel B. |
Published in: |
Real Estate Economics. - American Real Estate and Urban Economics Association - AREUEA. - Vol. 6.1978, 1, p. 50-69
|
Publisher: |
American Real Estate and Urban Economics Association - AREUEA |
Saved in:
freely available
Saved in favorites
Similar items by person
-
The financial planning and management of real estate developments
Gau, George W., (1980)
-
Reinvestment Rates and the Sensitivity of Rates of Return in Real Estate Investment
Gau, George W., (1976)
-
Gau, George W., (1979)
- More ...