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The use of least median of squares in the estimation of land value equations
Resource type
Author/contributor
- Thorson, James A (Author)
Title
The use of least median of squares in the estimation of land value equations
Abstract
Ordinary least squares (OLS) regression is relatively sensitive to the presence of outliers in a data set. In this paper, a robust estimation method, least median of squares (LMS) is used to identify outliers in land value data. Once the outliers are identified, are the land value equations re-estimated. The results show that a few observations can have a significant effect on the estimated coefficients. Finally, the observations which were identified as outliers were examined in more detail. One cause of outliers is an omitted variable. In this case, a large fraction of the outliers were found to be observations with high development potential.
Publication
Journal of Real Estate Finance and Economics
Date
1994-03
Volume
8
Issue
2
Pages
183-190
Journal Abbr
J Real Estate Finan Econ
Citation Key
pop00046
ISSN
0895-5638
Language
English
Extra
9 citations (Crossref) [2023-10-31]
Citation Key Alias: lens.org/152-793-685-331-907
tex.type: [object Object]
Citation
Thorson, J. A. (1994). The use of least median of squares in the estimation of land value equations. Journal of Real Estate Finance and Economics, 8(2), 183–190. https://doi.org/10.1007/bf01097037
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