DWELLING AGE HETEROSKEDASTICITY IN REPEAT SALES HOUSE PRICE EQUATIONS

Several authors have attributed the heteroskedasticity observed in rep eat sales house price equations to the length of time between sales. R ecently, Goodman and Thibodeau (1995) developed a theoretical model th at relates heteroskedasticity in hedonic house price equations to dwel ling age, Using data for nearly 2,000 repeat sales in Dallas, Texas, t his research examines whether repeat sales heteroskedasticity is relat ed to dwelling age, to the length of time between sales, or to both. A n iterative generalized least squares procedure that explicitly models the residual variance is used to obtain robust parameter estimates an d to increase the efficiency of the usual repeat sales price indices.