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@article{ART001888129},
author={Lee, Changro and Park， Key Ho},
title={Incorporating Subjective Priors into Mass Appraisal Modeling},
journal={The Korea Spatial Planning Review},
issn={1229-8638},
year={2014},
volume={81},
pages={67-89},
doi={10.15793/kspr.2014.81..005}

TY - JOUR
AU - Lee, Changro
AU - Park， Key Ho
TI - Incorporating Subjective Priors into Mass Appraisal Modeling
JO - The Korea Spatial Planning Review
PY - 2014
VL - 81
IS - null
PB - 국토연구원
SP - 67
EP - 89
SN - 1229-8638
AB - The government-announced land price has a variety of usage from providing land information to market to serving as assessment value for property. In this study, we investigate an alternative model to enhance the accuracy of this government-announced land price. The current model for the price estimation is based on a standard comparison table of price, which is a special case of hedonic pricing models. This comparison table is constructed from the ordinary least squares result, which is one of frequentist approaches. The frequentist approach, however, can only produce an output as good as the quality of input data and if the data is not enough in amount or its quality is poor, its output necessarily deteriorates. We overcome this constraint of data by incorporating substantive knowledge of real estate experts (subjective priors) into mass appraisal modeling. The improved accuracy of our model is verified by the cross-validation simulation method. Attractiveness of a Bayesian model lies in the fact that it provides a logically transparent method for combining prior information with data, rather than rejecting the knowledge in experts’ heads just because it is subjective or qualitative.
KW - Mass Appraisal;Expert Knowledge;Subjective Priors;Bayesian Estimation;Standard Comparison Table of Price
DO - 10.15793/kspr.2014.81..005
ER -

Lee, Changro and Park， Key Ho. (2014). Incorporating Subjective Priors into Mass Appraisal Modeling. The Korea Spatial Planning Review, 81, 67-89.

Lee, Changro and Park， Key Ho. 2014, "Incorporating Subjective Priors into Mass Appraisal Modeling", The Korea Spatial Planning Review, vol.81, pp.67-89. Available from: doi:10.15793/kspr.2014.81..005

Lee, Changro, Park， Key Ho "Incorporating Subjective Priors into Mass Appraisal Modeling" The Korea Spatial Planning Review 81 pp.67-89 (2014) : 67.

Lee, Changro, Park， Key Ho. Incorporating Subjective Priors into Mass Appraisal Modeling. 2014; 81 67-89. Available from: doi:10.15793/kspr.2014.81..005

Lee, Changro and Park， Key Ho. "Incorporating Subjective Priors into Mass Appraisal Modeling" The Korea Spatial Planning Review 81(2014) : 67-89.doi: 10.15793/kspr.2014.81..005

Lee, Changro; Park， Key Ho. Incorporating Subjective Priors into Mass Appraisal Modeling. The Korea Spatial Planning Review, 81, 67-89. doi: 10.15793/kspr.2014.81..005

Lee, Changro; Park， Key Ho. Incorporating Subjective Priors into Mass Appraisal Modeling. The Korea Spatial Planning Review. 2014; 81 67-89. doi: 10.15793/kspr.2014.81..005

Lee, Changro, Park， Key Ho. Incorporating Subjective Priors into Mass Appraisal Modeling. 2014; 81 67-89. Available from: doi:10.15793/kspr.2014.81..005

Lee, Changro and Park， Key Ho. "Incorporating Subjective Priors into Mass Appraisal Modeling" The Korea Spatial Planning Review 81(2014) : 67-89.doi: 10.15793/kspr.2014.81..005