Figure B5: Results of the semiparametric estimation Notes: The left-hand side of the Figure represents the curve fitted through the quality adjusted sale prices obtained in the first stage. (Table B1 shows the coefficients from the first stage of the semiparametric method, which are similar to the coefficients shown in Table 3.) The curve is a second-degree local polynomial with a bandwidth of 15 years on both sides and an Epanechnikov weighting scheme. Confidence bands are represented by the gray areas around the curve. The right-hand side of the figure charts the discount rates implied by the curve. Results are similar to those depicted in Figure 7, which is derived from a standard regression with dummies.