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RETURN TO WINE: A COMPARISON OF THE HEDONIC, REPEAT SALES AND HYBRID APPROACHES
Author(s) -
FOGARTY JAMES J.,
JONES CALLUM
Publication year - 2011
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/j.1467-8454.2011.00416.x
Subject(s) - wine , econometrics , business , economics , food science , chemistry
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.