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This article evaluates the new automated valuation model (AVM), geographically weighted regression (GWR), which incorporates a geospatial factor, the parcel’s x-y coordinates obtained from the geographic information system (GIS), in the model specification. It also introduces and evaluates a variant of GWR called geographic-attribute weighted regression (GAWR), which incorporates the parcel’s similarity to surrounding parcels as well its location. The study used an existing research dataset (Moore 2006) to compare value estimates obtained through incorporation of parcel x-y coordinates in the AVM model specification with estimates produced by commonly used AVMs that do not include a geospatial factor. The findings were extended and validated by applying the new methodology to datasets from the City of Norfolk and Fairfax County, Virginia. The study was conducted using a rigorous experimental design with statistical hypothesis testing, frequently missing in papers reporting comparison of results produced from various AVMs.
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Moore et al. (2010) studied this question.