Residential Property Price Indexes: Spatial Coordinates Versus Neighborhood Dummy Variables

This paper addresses the following question: can satisfactory residential property price indexes be constructed using hedonic regression techniques where location effects are modeled local neighborhood dummy variables or is it necessary to use spatial coordinates model effects. Hill and Scholz (2018) addressed this question found, their model, that was not obtain for Sydney. However, did estimate separate land structure properties. To construct national balance sheet estimates, have indexes. The present in context of providing coordinate used a modification Colwell’s (1998) interpolation method. viewed as general nonparametric method estimating function two variables.