Return to wine: A comparison of the hedonic, repeat sales, and hybrid approaches

James Joseph Fogarty and Callum Jones

No 108668, Working Papers from University of Western Australia, School of Agricultural and Resource Economics

Abstract: 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 approaches, and here the performance of the hedonic approach, repeat sales approach, and hybrid approach are compared using 14,102 auction sale observations for Australian wine over the period 1988 to 2000. For the data set considered the results show that the hybrid approach provides the most efficient estimates, and that the repeat sales approach provides significantly higher total return estimates than the other two approaches. The portfolio diversification benefit attributed to holding wine is then shown to vary with estimation method.

Keywords: Research; Methods/Statistical; Methods (search for similar items in EconPapers)
Pages: 14
Date: 2011-07-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://ageconsearch.umn.edu/record/108668/files/WP110019.pdf (application/pdf)

Related works:
Journal Article: RETURN TO WINE: A COMPARISON OF THE HEDONIC, REPEAT SALES AND HYBRID APPROACHES (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:uwauwp:108668

DOI: 10.22004/ag.econ.108668

Access Statistics for this paper

More papers in Working Papers from University of Western Australia, School of Agricultural and Resource Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().