Return to Wine: A Comparison of the Hedonic, Repeat Sales and Hybrid Approaches
James J. Fogarty
University of Western Australia
affiliation not provided to SSRN
Australian Economic Papers, Vol. 50, Issue 4, pp. 147-156, 2011
Comparisons between the return to wine and standard financial assets are complicated in that the return to wine must be estimated from infrequent sales of heterogeneous wine brands. Wine returns can be estimated using several different methods, and here the performance of the hedonic model, repeat sales model, and hybrid model are compared using 14,102 auction sale observations for Australian wine over the period 1988 to 2000. The results show that the hybrid model provides the most efficient estimates, and that the repeat sales model provides significantly higher total return estimates than the other two models.
Number of Pages in PDF File: 10Accepted Paper Series
Date posted: December 14, 2011
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