Improving Valuation for Property Tax Purposes Through New Spatial Econometric Methods: The Case of Bogota, Colombia

Project Description

This project will assess and improve methodologies to valuate property and land by spatial submarket, using a 20,000 property sample from the current mass appraisal of Bogotá’s Unidad Administrativa Especial de Catastro Distrital (UAECD) as illustration. A sensitivity analysis will compare the squared residuals of hedonic price equations from spatial submarkets defined by UAECD’s site visits to those obtained through state-of-the-art spatial econometric methods and cluster analysis. We will address methodological challenges generally ignored in current research, including the endogeneity of spatial submarket definitions and the simultaneous occurrence of spatial heterogeneity and spatial dependence. 

ASU Staff

This project will be directed by Postdoctoral Research Associate Dr. Nancy Lozano-Gracia, with consulting by Foundation Professor Dr. Luc Anselin.

Funding

The project is funded by the Lincoln Institute of Land Policy.