Examining omitted variable bias in anchoring premium estimates: Evidence based on assessed value
提出一种基于评估价值的新方法，控制住房市场中未观测到的持久质量，有效缓解遗漏变量偏差，为估计市场价值提供新工具。
Abstract A new assessed value approach is proposed to control for the amount of persistent unobserved quality. The approach to a well‐established two‐stage framework developed by Genesove and Mayer (GM, 2001) is applied, who test the effect of an expected loss on final transaction prices in the housing market. It is shown that the assessed value model effectively mitigates the omitted variable bias and produces similar results as GM when the first‐stage residual is included. Importantly, the model does not rely on repeat sales and therefore provides a powerful new tool for estimating market value. Results are robust to alternative specifications, to controlling for loan‐to‐value ratios, to replacing final sale price with listing price, to alternative fixed effects, to subperiods, to different holding periods, to simulated quality, to excluding flippers, and to controlling improvements between sales.