This paper incorporates spatial and temporal dependence among housing transactions in predicting future house prices. We employ the spatial and temporal autoregressive model and structure the spatial and temporal weighting matrices as in Pace et al. (1998). We control for the time variation of...

Big house or small house, which one should we buy? To answer this question, we employed both mean-variance approach and stochastic dominance approach that utilizes the entire yield distribution to rank the performance of the Hong Kong housing market. While mean-variance rules cannot show a clear...