Research Discussion Paper – RDP 2014-04 Home Price Beliefs in Australia

Contents

• Introduction
• Background and Existing Literature
• Data
• Hedonic Methodology
• Measuring Home Valuation Differences
• Determinants of Home Valuation Differences
• Financial Decisions and Home Valuation Differences
• Robustness Tests
• Conclusion
• Appendix A: Hedonic Model Output
• Appendix B: Estimating Homeowner Recollection Bias
• Appendix C: Quantile Regression Output
• Appendix D: Economic Decisions Output
• Appendix E: Additional Robustness
• References
• Copyright and Disclaimer Notices

The Discussion Paper series is intended to make the results of the current economic research within the Reserve Bank available to other economists. Its aim is to present preliminary results of research so as to encourage discussion and comment. Views expressed in this paper are those of the authors and not necessarily those of the Reserve Bank. Use of any results from this paper should clearly attribute the work to the authors and not to the Reserve Bank of Australia.

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We would like to thank Katherine Leong for her valuable contribution to earlier versions of this work. We are also grateful to Alexandra Heath, Christopher Kent, Tony Richards and Peter Tulip, as well as Roger Wilkins and other seminar participants at the biennial HILDA Survey Research Conference 2013.