Disequilibrium in the housing market can be detected by comparing the actual price-rent ratio with its equilibrium … presence of omitted variables. Applying this method to a data set consisting of 730,000 individual price and rent transactions … we find that quality adjusting significantly reduces the actual price-rent ratio. We then insert these quality adjusted …

units from repeated cross-sections of geocoded micro data. The algorithm combines parametric and non-parametric estimation … the density bias of price-to-rent ratios in levels and trends, within and between cities. Our method lends itself to the … creation of comparable neighborhood-level qualified rent indices (Mietspiegel) across Germany. …

that are especially useful, namely price-to-rent ratios, the business confidence at the national level, and consumer … possible to detect when using full-sample estimation information. On average, the forecast improvements attain about 20 …