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On the imputation of rental prices to owner-occupied housing

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dc.affiliation.dptoUC3M. Departamento de Economíaes
dc.contributor.authorRuiz-Castillo, Javier
dc.contributor.authorArévalo, Raquel
dc.date.accessioned2009-09-22T11:56:36Z
dc.date.available2009-09-22T11:56:36Z
dc.date.issued2006-06
dc.description.abstractThis paper challenges the usual objections to the possibility of applying the rental equivalent approach to determine the weight that nonrental housing services should have in the Consumer Price Index (CPI). Using data from two Spanish household budget surveys, it is shown that market rents can be well represented in terms of an index of housing quality, two geographical variables, and the year of occupancy. This parsimonious empirical model is used to impute a rental value to nonrental housing units, taking into account the possible selection bias induced by systematic differences in housing characteristics between the market rental sector and the nonrental stock. On average, the estimated hedonic values are relatively close to the self-imputations provided in the household surveys by the occupants of such dwellings. Therefore, using either of the two alternatives to assess the importance of nonrental housing services in the CPI have small consequences for inflation. Instead, dropping these services from the CPI creates a downward bias in the measurement of inflation of 0.33 percentage points per year during 1985–1992, and an upward bias of 0.38 percentage points per year during 1993 to 2000.
dc.description.statusPublicado
dc.format.mimetypetext/plain
dc.format.mimetypeapplication/pdf
dc.identifier.bibliographicCitationJournal of the European Economic Association, 2006, v. 4, n. 4, pp. 830-862
dc.identifier.doi10.1162/JEEA.2006.4.4.830
dc.identifier.issn1542-4766
dc.identifier.publicationfirstpage830
dc.identifier.publicationissue4
dc.identifier.publicationlastpage862
dc.identifier.publicationtitleJournal of the European Economic Association
dc.identifier.publicationvolume4
dc.identifier.urihttp://hdl.handle.net/10016/4743
dc.language.isoeng
dc.publisherMIT Press
dc.relation.publisherversionhttp://dx.doi.org/10.1162/JEEA.2006.4.4.830
dc.rights©European Economic Association
dc.rights.accessRightsopen access
dc.subject.ecienciaEconomía
dc.subject.jelC43
dc.subject.jelD12
dc.subject.jelR21
dc.subject.jelC21
dc.subject.jelE31
dc.titleOn the imputation of rental prices to owner-occupied housing
dc.typeresearch article*
dc.type.reviewPeerReviewed
dspace.entity.typePublication
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