A Study on Estimation of Land Value Using Spatial Statistics: Focusing on Real Transaction Land Prices in Korea

• DOI: 10.3390/su8030203
• Publication Date: 2016-02-25T15:24:25Z
• Authors: Bongjoon Kim; Taeyoung Kim
• Keywords: Akaike information criterion; Ordinary least squares; Equity

The aim of this research is to compare OLS (Ordinary Least Squares) and spatial regression models which are methods calculating the traditional value land—using data on practical transaction price land—and enhance applicability estimation official land assessment prices set by Korean government while deducing policy implications for effective implementation. That is, as a way overcome limitations model, we various Generalized Regression Models such SLM (Spatial Lag Model), SEM Error Model) with OLS. Consequently, an in-depth diagnosis conducted generate proper model pricing, and, also, analysis focuses vertical horizontal equity using COD (Coefficient Dispersion), COV Variation) PRD (Price-Related Differential). results indicate that more appropriate than AIC (Akaike info criterion) SC (Schwarz in terms measuring log-likelihood, demonstrating autocorrelation superior model. It shows also best among tested regard equity. econometric therefore, strongly recommended estimating houses.