Evaluating the Accuracy of Homeowners' Self-Assessed Rent in Metropolitan Lima

Attributing a rental value to homeowners' dwellings is essential in different contexts, including poverty and inequality analysis, the compilation of national accounts, consumer price indexes, and estimation of purchasing power parity indexes....

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Main Authors:	Ceriani, Lidia, Olivieri, Sergio, Ranzani, Marco
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	IMPUTED RENT HEDONIC MODEL RENTAL MARKET CONSUMER PRICE INDEX PURCHASING POWER PARITY
Online Access:	http://documents.worldbank.org/curated/en/287901565890099664/Evaluating-the-Accuracy-of-Homeowners-Self-Assessed-Rent-in-Metropolitan-Lima http://hdl.handle.net/10986/32276

id	okr-10986-32276
recordtype	oai_dc
spelling	okr-10986-322762019-08-17T05:10:56Z Evaluating the Accuracy of Homeowners' Self-Assessed Rent in Metropolitan Lima Ceriani, Lidia Olivieri, Sergio Ranzani, Marco IMPUTED RENT HEDONIC MODEL RENTAL MARKET CONSUMER PRICE INDEX PURCHASING POWER PARITY Attributing a rental value to homeowners' dwellings is essential in different contexts, including poverty and inequality analysis, the compilation of national accounts, consumer price indexes, and estimation of purchasing power parity indexes. The proposed solution is often to use homeowners' estimates of the market rent they would pay for their dwelling if they were renting it, which is usually referred to as homeowners' self-assessed rent. Lack of alternative surveys and up-to-date and complete administrative data about dwellings' market values typically bounds researchers to test the accuracy of homeowners' self-assessed rent using only information from household budget surveys. Using 13 years of the Peruvian household budget survey, this paper compares two methods to assess the accuracy of homeowners' self-assessed rent and finds that the average homeowner in Lima overestimates the market rent of her dwelling by between 8 and 15 percent. However, homeowners' self-assessment inaccuracy fades away in most years when homeowners are compared with their most observationally similar tenants. 2019-08-16T16:53:27Z 2019-08-16T16:53:27Z 2019-08 Working Paper http://documents.worldbank.org/curated/en/287901565890099664/Evaluating-the-Accuracy-of-Homeowners-Self-Assessed-Rent-in-Metropolitan-Lima http://hdl.handle.net/10986/32276 English Policy Research Working Paper;No. 8983 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Peru
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	IMPUTED RENT HEDONIC MODEL RENTAL MARKET CONSUMER PRICE INDEX PURCHASING POWER PARITY
spellingShingle	IMPUTED RENT HEDONIC MODEL RENTAL MARKET CONSUMER PRICE INDEX PURCHASING POWER PARITY Ceriani, Lidia Olivieri, Sergio Ranzani, Marco Evaluating the Accuracy of Homeowners' Self-Assessed Rent in Metropolitan Lima
geographic_facet	Latin America & Caribbean Peru
relation	Policy Research Working Paper;No. 8983
description	Attributing a rental value to homeowners' dwellings is essential in different contexts, including poverty and inequality analysis, the compilation of national accounts, consumer price indexes, and estimation of purchasing power parity indexes. The proposed solution is often to use homeowners' estimates of the market rent they would pay for their dwelling if they were renting it, which is usually referred to as homeowners' self-assessed rent. Lack of alternative surveys and up-to-date and complete administrative data about dwellings' market values typically bounds researchers to test the accuracy of homeowners' self-assessed rent using only information from household budget surveys. Using 13 years of the Peruvian household budget survey, this paper compares two methods to assess the accuracy of homeowners' self-assessed rent and finds that the average homeowner in Lima overestimates the market rent of her dwelling by between 8 and 15 percent. However, homeowners' self-assessment inaccuracy fades away in most years when homeowners are compared with their most observationally similar tenants.
format	Working Paper
author	Ceriani, Lidia Olivieri, Sergio Ranzani, Marco
author_facet	Ceriani, Lidia Olivieri, Sergio Ranzani, Marco
author_sort	Ceriani, Lidia
title	Evaluating the Accuracy of Homeowners' Self-Assessed Rent in Metropolitan Lima
title_short	Evaluating the Accuracy of Homeowners' Self-Assessed Rent in Metropolitan Lima
title_full	Evaluating the Accuracy of Homeowners' Self-Assessed Rent in Metropolitan Lima
title_fullStr	Evaluating the Accuracy of Homeowners' Self-Assessed Rent in Metropolitan Lima
title_full_unstemmed	Evaluating the Accuracy of Homeowners' Self-Assessed Rent in Metropolitan Lima
title_sort	evaluating the accuracy of homeowners' self-assessed rent in metropolitan lima
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/287901565890099664/Evaluating-the-Accuracy-of-Homeowners-Self-Assessed-Rent-in-Metropolitan-Lima http://hdl.handle.net/10986/32276
_version_	1764476206654160896

Evaluating the Accuracy of Homeowners' Self-Assessed Rent in Metropolitan Lima

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