Constructing Building Price Index Using Administrative Data

Abstract Improving the accuracy of deflators is crucial for measuring real GDP and growth rates. However, construction prices are often difficult to measure. This study uses stratification hedonic methods estimate price indices. The estimated indices based on actual transaction buildings (contract prices) obtained from Statistics Building Starts survey information administrative sector in Japan. Compared with cost deflator (CCD), calculated by compounding input costs, output show higher rates increase during economic expansion phase after 2013. suggests that profit surge observed period not fully reflected CCD. Furthermore, difference between two “output-type” shrinks when estimation precisely configured.