4min chapter

The Joe Walker Podcast cover image

Housing Bubble Week: Lessons From Amsterdam's 'Gentlemen's Canal' - Piet Eichholtz

The Joe Walker Podcast

CHAPTER

The Hidonic Approach to Estimating the Market's Quality

Pete Herringracht: We observe about 5,500 transactions and that's enough to create an index. So we just have two years for which no transaction data is available. And then the house stayed the same in quality. And then we compare, you know, for one house, we compare one house to itself. That's what you do with repeat sales index. Now, I'm going to ask you to describe what the chart would look like if we plotted real prices over time.

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