A Spatial Price Index for Urban Housing in Colombia: A Matching Approach [Índice de precios espacial para la vivienda urbana en Colombia: Una aplicación con métodos de emparejamiento]

The formulation of an index number which allows spatial comparison of housing prices is of major relevance for economic policies related to the expenditure assigned to social housing. This study aims to compute a spatial price index for urban housing in the main Colombian cities, using the Propensity Score Matching (PSM) method. With this econometric strategy we seek the comparison of each city's estate within a homogeneous framework, assessing the price differential by using quantile hedonic regressions. Two additional applications are conducted: (i) housing comparison according to the price range (low, medium, high), (ii) examination of the average price differential change when the characteristics of the dwelling unit vary. Results indicate that Bogota has the highest housing price, followed by Cartagena and Villavicencio. Additionally, the housing price differentials across cities are sizeable and reach nearly 30%. Said differentials vary according to the type of standard housing and price ranges. © Revista de Economía del Rosario.

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