Method of substitution with group measurements as a metrological basis of comparative methodical approach application

Yuri Pozdnyakov
Leading expert appraiser, Member of Ukrainian Society of Appraisers, representative of UAA Expert council in Lviv region, Ukraine, e-mail: jerzy.pozdniakow@gmail.com, ORCID ID: https://orcid.org/0000-0001-5849-7345

Maria Lapishko
PhD in Economics, Professor, Department of Finance, Accounting and Analysis, Institute of Entrepreneurship and Advanced Technologies of the National University «Lviv Polytechnic», Ukraine, e-mail: lapishko@i.ua, ORCID ID: https://orcid.org/0000-0002-6690-3080

Cite this article:

Pozdnyakov, Y., Lapishko, M. (2018). Method of substitution with group measurements as a metrological basis of comparative methodical approach application. Ed.: M. Zveryakov (ed.-in-ch.) and others [Metod zamishchennia hrupovoiu miroiu yak metrolohichna osnova zastosuvannia porivnialnoho metodychnoho pidkhodu; za red.: М. I. Zveriakova (gol. red.) ta in.], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 2 (66), pp. 256‒268.

Abstract

The metrological principles of the economic measurements implementation using the comparative methodical approach are considered in the article. According to the proposed approach using the substitution method, the set of compared objects is treated as a group measurement standard, which with a certain accuracy reproduces the single indicator of value, which is appropriate to the selection objects. Every individual object of comparison representing this set in that case is treated as an unambiguous measurement of the single indicator of value. It is shown that in the case if for the set of compared objects, including evaluation object, homogeneity condition for this parameter is satisfied, it may be replaced by this group measurement in order to determine cost indicators of the evaluation object. The basic proportions to determine the influence of systematic and random errors in this case are formulated and analyzed. The obtained analytical equations describing the errors of the substitution method using the group measurement standard give an opportunity to analyze the share of the systematic component in the overall measurement error of estimating value of the evaluation object. The possibilities of reducing the influence of systematic component of measurement error, introduced by the compared objects, are obtained and mathematically proved. Practical recommendations for increasing accuracy and reliability of evaluation results are formulated.

Keywords

real estate valuation/appraising; metrological approach; market value; estimation error; estimation accuracy; substitution method; group measurement.

JEL classification: С130; С520; С830; G120; DOI: https://doi.org/10.33987/vsed.2(66).2018.256-268

UD classification: 303.094.5:330.133.2:330.133.7

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