Classical and Bayesian Methods for the VAR Analysis: International Comparisons

This study presents the methodology used by the Agenzia del territorio to produce real-estate indices for the analysis of the housing market in the Turinese area districts. The importance of an index is highlighted by the fact that a significant percentage of national wealth is the property sector. To this end, we use a rich and detailed database on transaction prices which allows us to study the dynamics of the residential housing market through the estimation of hedonic price indexes for Turin. This study carried out an hedonic methodology, not yet applied in Italy, on data collected and aggregates in homogeneous areas for the city of Turin. The results obtained appear to be of valid significance in the ratios, also in terms of values. Home price increased 40 percent from first semester of 2003 through the second semester of 2007.