Assessing the appropriateness of the spatial distribution of Standard Lots using the L-index

Abstract

Standard lots, which are used to assess values of individual lots in Korea, have been criticized for their improper distribution. However, there has been very little evaluation for the spatial distribution of standard lots, and an evaluation method has never been developed. In order to overcome this situation, we attempt to assess the appropriateness of the spatial distribution of standard lots using the L-index and Monte Carlo simulation. The L-index is a well-known indicator of the complete spatial randomness (CSR) of points in spatial statistics. If the L-index of standard lots is similar to that of individual lots, the former is considered to be randomly distributed according to the latter. By analyzing L-indices of two study areas, Gangnam and Seongdong, we find a statistically significant difference in Gangnam area and a relatively small difference in Seongdong area. We confirm that the spatial distribution of standard lots is not CSR and that the L-index is useful as an evaluation method. These results suggest that the standard lot selection and management guidelines need to be modified to apply the spatial distribution of individual lots to the standard lot selection process.