Speaker : Professor Shaitra H. Nagaraja, Fordham University
Housing is a significant component of a nation's economy and house price indices allow us to understand how such markets operate by tracking changes over time. These indices can be useful for a variety of purposes: as macroeconomic indicators, as input into other indicators, by individuals looking to sell or purchase a home, or for appraising homes. We begin by examining the problem of constructing house price indices in the global context. Issues such as hedonic characteristics, geography, and market structure, all of which can introduce biases into the index, are discussed. We conclude by proposing the use of predictive ability as a quantitative metric as a more objective platform for comparing and evaluating house price indices.