Applying the Bayesian Multivariate Regression for Estimation of the Rental Rate of Endowment and Charity Affairs Organization's Real Estates

Document Type : Research Paper

Authors
Mostafa Salimifar
Hamed Sahebhonar
10.30497/ies.2014.1598
Abstract
Waqf is an important economic institution of Islam which can help us in achieving the economic development. Unfortunately the feetails income in Iran is very low, in despite of their abundance. This causes decreasing of the potential power of this institution regarding social welfare improvement and efficiency. Real estate pricing and rent estimation is a significant issue in this sector. This paper describes how we can apply the Bayesian multivariate regression for estimating the feetails rental rate as accurate as possible. A natural conjugate prior function has been used. The sample size exceeds 70 thousands and is related to 22 regions of Tehran city. Running the initial model, we estimate the elasticity of variables and the insignificant coefficients were eliminated.  The final results show that the location variable has the most important effect on  price.
Keywords
Waqf
real estate rental rate
Bayesian multiple regression model
natural conjugate prior
charity economics