| Number |
CREPEDP-112 |
| Publication Date |
October 2021 |
| Title |
Constructing a Building Price Index Using Big Data
from the Administrative Sector--A Method for Estimating an Output-type Building Price Index
Using Individual Data from the Statistics of Building Starts
|
| Author |
Masahiro Higo, Yumi Saita, Chihiro Shimizu, and Yuta Tachi
|
| 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 the stratification and hedonic methods to estimate price indices. The estimated indices are based on the actual transaction prices of buildings (contract prices) obtained from the Statistics on Construction Starts survey information and big data from the administrative sector in Japan. Compared with the construction cost deflator, calculated by compounding input costs, the estimated output price indices show higher rates of increase during the economic expansion phase after 2013. This suggests that the profit surge in the construction sector observed in that period is not fully reflected in the construction cost deflator. Furthermore, the difference between the two output type indices obtained by stratification and hedonic methods tends to zero when the estimation methods are precisely configured.
|
| Keywords |
building price index, stratification method, hedonic method Japan, big data
|
| Other information |
Paper in English (28 pages) |