Analysis of housing price by means of STAR models with neighbourhood effects: a Bayesian approach
In this paper, we extend the Bayesian methodology introduced by Beamonte et al. (Stat Modelling 8:285311, 2008) for the estimation and comparison of spatio-temporal autoregressive models (STAR) with neighbourhood effects, providing a more general treatment that uses larger and denser nets for the number of spatial and temporal influential neighbours and continuous distributions for their smoothing weights. This new treatment also reduces the computational time and the RAM necessities of the estimation algorithm in Beamonte et al. (Stat Modelling 8:285311, 2008). The procedure is illustrated by an application to the Zaragoza (Spain) real estate market, improving the goodness of fit and the outsampling behaviour of the model thanks to a more flexible estimation of the neighbourhood parameters.
star real estate market bayesian inference hedonic model c11 c21 c22 r31 e37