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CPS1198 Firano Z. et al.
Table 1. Econometrics Result of panel data modelling (all region)
Rabat- Hay-Riad Hay-Riad
5
Centre
Variable Coefficient t-Statistic Prob. Coefficient t-Statistic Prob. Coefficient t-Statistic Prob.
LOGPRICE 0.354213 28.00295 0.0000 0.474743 55.71992 0.0000 0.545158 99.77354 0.0000
(-1)
LOGMETRE 0.812602 37.79219 0.0000 0.770388 46.57118 0.0000 0.821840 54.41956 0.0000
AGE 0.000615 7.446784 0.0000 0.000419 3.474022 0.0005 0.000850 8.214648 0.0000
BALCON 0.056413 1.652031 0.0986 0.163186 1.944212 0.0519 0.026991 1.772235 0.0764
N°ETAGE 0.042172 3.251869 0.0011
COURS -0.026646 -2.341135 0.0192 0.073186 4.846090 0.0000

ETAGE -0.000396 -1.885191 0.0594 0.000843 2.458912 0.0139
D1 -0.021123 -3.804266 0.0001 0.068631 9.254140 0.0000 0.116537 19.56736 0.0000
D3 -0.060075 -12.62286 0.0000
D4 -0.056507 -2.212520 0.0269
Garage 0.100649 4.144788 0.0000 0.025104 0.466069 0.6412
D5 0.157300 18.85926 0.0000
D8 0.114777 7.577319 0.0000
CAVE 0.387825 3.015558 0.0026
Piscine -0.516307 -5.683270 0.0000
R-squared 0.548718 0.660739 0.659114
J-statistic 12647.00 (0.00) 7140.000 10.07631
(0.00)

In the three models estimated, we took into account all the potentially
explanatory characteristics of real estate prices, while taking into account the
specific effects of each type of property.
We applied the standard Brownian motion approach where the price is
decomposed into drift and volatility. We considered that the coefficients
explaining the influence of the intrinsic and fundamental variables are the
factors of actualization. Subsequently, we extracted the different discount
rates for the different zones. This made it possible to estimate the drift of the
function and to be able to calculate the volatility of the estimated coefficients.
Thus via the equation describing IPHB presented previously, we were able to
calculate the index over several periods.
Figure 2. IPHB vs Central bank index (BKAM)

To be able to validate the results obtained via our new approach, we used
the index developed by the Central Bank of Morocco (BKAM), which is based
on the repeat sales method.

Estimates were made using the two-stage instrumental variables approach to correct the low
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exogeneity bias
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