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Further Evaluating the Impact of Kernel and Bandwidth Specifications of Geographically Weighted Regression on the Equity and Uniformity of Mass Appraisal Models

Chapter
Part of the Studies in Systems, Decision and Control book series (SSDC, volume 86)

Abstract

Research has consistently demonstrated that geographically weighted regression (GWR) models significantly improve upon accuracy of ordinary least squares (OLS)-based computer-assisted mass appraisal (CAMA) models by more accurately accounting for the effects of location (Fotheringham et al. 2002; LeSage 2004; Huang et al. 2010). Bidanset and Lombard (2014a, 2017) previously studied the impacts of various kernel and bandwidth combinations employed in building residual (i.e. sale price less land value) GWR CAMA models and found that the specification of each does bear significant effect on valuation equity attainment. This paper builds upon the previous research by comparing performance of weighting specifications of non-building residual (i.e. full sale price) GWR CAMA models using new data of a different geographic real estate market. We find that the exponential kernel and fixed bandwidth together achieve a superior COD for our data, and that COD does fluctuate depending on the GWR weighting specification.

Keywords

Geographic weighted regression Automated valuation methods 

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Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  1. 1.School of the Built EnvironmentUlster UniversityNewtownabbeyUK
  2. 2.Old Dominion UniversityNorfolkUSA
  3. 3.African Tax InstituteUniversity of PretoriaPretoriaSouth Africa

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