Spatial Statistics and Real Estate
Document Type
Article
Publication Date
1-1-1998
Abstract
Real estate has historically employed statistical tools designed for independent observations while simultaneously noting the violation of these assumptions in the form of clustering of same sign residuals by neighborhood, along roads, and near facilities such as airports. Spatial statistics takes these dependencies into account to provide more realistic inference (OLS has biased standard errors), better prediction, and more efficient parameter estimation. This article provides an overview of the field and directs readers to the relevant literature and software.
Publication Source (Journal or Book title)
Journal of Real Estate Finance and Economics
First Page
5
Last Page
13
Recommended Citation
Pace, R., Barry, R., & Sirmans, C. (1998). Spatial Statistics and Real Estate. Journal of Real Estate Finance and Economics, 17 (1), 5-13. https://doi.org/10.1023/A:1007783811760