<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Improving the accuracy of deflators is crucial for measuring real GDP and growth rates. However, construction prices are often difficult to measure. This study uses the stratification and hedonic methods to estimate price indices. The estimated indices are based on the actual transaction prices of buildings (contract prices) obtained from the Statistics on Building Starts survey information from the administrative sector in Japan. Compared with the construction cost deflator (CCD), calculated by compounding input costs, the estimated output price indices show higher rates of increase during the economic expansion phase after 2013. This suggests that the profit surge in the construction sector observed in that period is not fully reflected in the CCD. Furthermore, the difference between the two “output-type” indices obtained by stratification and hedonic methods shrinks when the estimation methods are precisely configured.</p>
</abstract>

Improving the accuracy of deflators is crucial for measuring real GDP and growth rates. However, construction prices are often difficult to measure. This study uses the stratification and hedonic methods to estimate price indices. The estimated indices are based on the actual transaction prices of buildings (contract prices) obtained from the Statistics on Building Starts survey information from the administrative sector in Japan. Compared with the construction cost deflator (CCD), calculated by compounding input costs, the estimated output price indices show higher rates of increase during the economic expansion phase after 2013. This suggests that the profit surge in the construction sector observed in that period is not fully reflected in the CCD. Furthermore, the difference between the two “output-type” indices obtained by stratification and hedonic methods shrinks when the estimation methods are precisely configured.

Constructing Building Price Index Using Administrative Data

Journal of Official Statistics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Constructing Building Price Index Using Administrative Data"}

Improving the accuracy of deflators is crucial for measuring real GDP and growth rates. However, construction prices are often difficult to measure. This study...

Constructing Building Price Index Using Administrative Data

Published Online: Jun 09, 2023

Page range: 229 - 251

Received: Oct 01, 2021

Accepted: Dec 01, 2022

DOI: https://doi.org/10.2478/jos-2023-0011

Keywords
Building price index, stratification method, hedonic method, Japan, administrative data

© 2023 Masahiro Higo et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Constructing Building Price Index Using Administrative Data

Published Online: Jun 09, 2023

Page range: 229 - 251

Received: Oct 01, 2021

Accepted: Dec 01, 2022

DOI: https://doi.org/10.2478/jos-2023-0011

KeywordsBuilding price index, stratification method, hedonic method, Japan, administrative data

© 2023 Masahiro Higo et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Building price index, stratification method, hedonic method, Japan, administrative data