scholarly journals Construction Of Hedonic Price Index For The “Most Liquid” Polish Painters

2014 ◽  
Vol 14 (2) ◽  
pp. 76-100
Author(s):  
Krzysztof Kompa ◽  
Dorota Witkowska
Keyword(s):  
Price Index ◽  
Art Market ◽  
Alternative Form ◽  
Expected Returns ◽  
Hedonic Price ◽  
Single Model ◽  
Quality Adjustment ◽  
Good Investment ◽  
Hedonic Quality ◽  
Hedonic Index

Abstract Art market has been developing in Poland and the first Art Fund was established in 2011. Therefore it seems that investment in art can be considered as alternative form by Polish investors. In order to decide whether art is a good investment, it is necessary to evaluate expected returns which might be obtained from such investment thus an art price index should be developed. The aim of the paper is to discuss artworks as investment assets and evaluate price index of paintings produced by 11 Polish artists whose artworks were traded the most often on auctions that were held in Poland in the years 2007–2010. In our research, employing data concerning 750 objects, we apply the hedonic index methodology to estimate returns from the paintings market. The results of our investigation show that hedonic quality adjustment essentially influences evaluation of artwork prices therefore we propose the aggregated hedonic index which might better describe situation at the art market than the hedonic index biased by the specification of a single model.

Pricing IaaS: A Hedonic Price Index Approach

2017 ◽  
pp. 18-28 ◽  
Author(s):  
Persefoni Mitropoulou ◽  
Evangelia Filiopoulou ◽  
Mara Nikolaidou ◽  
Christos Michalakelis
Keyword(s):  
Price Index ◽  
Hedonic Price ◽  
Index Approach

scholarly journals Inflation and Price Escalation Adjustments in Estimating Program Cost: F-35 Case Study

2020 ◽  
Vol 27 (92) ◽  
pp. 194-217
Author(s):  
Stanley Horowitz ◽  
Bruce Harmon
Keyword(s):  
Price Index ◽  
Hedonic Price ◽  
Cost Estimating ◽  
Program Cost ◽  
Defense Systems ◽  
Price Indexes ◽  
Acquisition Costs ◽  
Using Data ◽  
Price Escalation

Applying price indexes presents a challenge in estimating the costs of new defense systems. An inappropriate price index—one not closely linked to the inputs to the systems being costed—can introduce errors in both development of cost estimating relationships (CER) and in development of out-year budgets. To help cost analysts understand the impacts of different price indexes, this article applies two sets of price indexes to the F-35 program. Using hedonic price indexes derived from CERs, the authors isolate changes in price due to factors other than changes in quality by developing a “Baseline” CER model using data on historical tactical aircraft programs available early in the F-35 program. The focus of the work is to improve estimates of acquisition costs. All the data used in the econometric analysis are acquisition cost data. Better cost estimates should improve projections of budget requirements.

scholarly journals Hedonic Pricing on the Fine Art Market

Information ◽  
2020 ◽  
Vol 11 (5) ◽  
pp. 252
Author(s):  
Anna Zhukova ◽  
Valeriya Lakshina ◽  
Liudmila Leonova
Keyword(s):  
Stock Market ◽  
Price Index ◽  
Art Market ◽  
Fine Art ◽  
Hedonic Pricing ◽  
Influential Factors ◽  
Special Treatment ◽  
Asset Return ◽  
Heckman Model ◽  
Market Instability

In conditions of the stock market instability the art assets could be considered as an attractive investment. The fine art market is very heterogeneous which is featured by uniqueness of the goods, specific costs and risks, various peculiarities of functioning, different effects and, hence, needs special treatment. However, due to the diversity of the fine art market’s goods and the absence of the systematic information about the sales, researchers do not come to the same opinion about the merits of the art assets conducting studies on single segments of the market. We make an attempt to investigate attractiveness of the fine art market for investors. Extensive data was collected to obtain a complete pattern of the market analyzing it within different segments. We use the Heckman model in order to estimate the art asset return and find out the most influential factors of art price dynamics. Based on the estimates obtained we construct monthly art price index and compare it with S&P500 benchmark.

Design of Real Estate Price Index System Based on Hedonic Price Method

2014 ◽  
Vol 488-489 ◽  
pp. 1463-1466
Author(s):  
Yun Du ◽  
Hui Qin Sun ◽  
Su Ying Zhang ◽  
Qiang Tian
Keyword(s):  
Real Estate ◽  
Price Index ◽  
Real Estate Market ◽  
Hedonic Price ◽  
Hedonic Price Method ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Price ◽  
Price Series ◽  
Research Level

Urban real estate price index (hereinafter referred to as UREPI) is a basic data of the real estate market, its accuracy is very important for enterprises, consumers and housing management department. In view of current research level here in China and popular models, the UREPI system is compiled based on the Hedonic price method because of its advantages such as calculation simple and sample easily etc. Compiled by Eviews the system has three main stages: the data standardization, the benchmark model establishment and the application of two periods chained update method to update price series. UREPI system is combined with the real deal, so it can be used to analysis the market accurately. The results completely meet the design requirements.

A housing price index with the improvement-value adjusted repeated sales (IVARS) method

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chung Yim Edward Yiu ◽  
Ka Shing Cheung
Keyword(s):  
Price Index ◽  
Simulation Analysis ◽  
House Price ◽  
Housing Price ◽  
Housing Quality ◽  
Repeat Sales ◽  
Open Market ◽  
Hedonic Price ◽  
Content Type ◽  
Price Movements

Purpose The repeat sales house price index (HPI) has been widely used to measure house price movements on the assumption that the quality of properties does not change over time. This study aims to develop a novel improvement-value adjusted repeat sales (IVARS) HPI to remedy the bias owing to the constant-quality assumption. Design/methodology/approach This study compares the performance of the IVARS model with the traditional hedonic price model and the repeat sales model by using half a million repeated sales pairs of housing transactions in the Auckland Region of New Zealand, and by a simulation approach. Findings The results demonstrate that using the information on improvement values from mass appraisal can significantly mitigate the time-varying attribute bias. Simulation analysis further reveals that if the improvement work done is not considered, the repeat sales HPI may be overestimated by 2.7% per annum. The more quality enhancement a property has, the more likely it is that the property will be resold. Practical implications This novel index may have the potential to enable the inclusion of home condition reporting in property value assessments prior to listing open market sales. Originality/value The novel IVARS index can help gauge house price movements with housing quality changes.

scholarly journals Bias in the Consumer Price Index: What Is the Evidence?

1996 ◽  
Vol 10 (4) ◽  
pp. 159-177 ◽  
Author(s):  
Brent R Moulton
Keyword(s):  
Empirical Evidence ◽  
Budget Deficit ◽  
Price Index ◽  
Consumer Price Index ◽  
Federal Budget ◽  
Quality Adjustment ◽  
Federal Budget Deficit ◽  
Long Run ◽  
Sampling Procedures ◽  
The U.S

Recent research has suggested that the upward bias of the U.S. consumer price index may be significant, and correcting the biases would have important long-run effects on the federal budget deficit. The author describes the sampling procedures used in constructing the consumer price index, and gives simple examples of formula bias and quality adjustment. He then reviews the empirical evidence, attempting to show which biases are reliably estimated and which estimates of bias are based on extrapolation and guesswork. The author discusses possibilities for further research leading to potential improvements in the consumer price index.

Does Quality Adjustment Matter for Technologically Stable Products? An Application to the CPI for Food

2011 ◽  
Vol 101 (3) ◽  
pp. 200-205 ◽  
Author(s):  
John S Greenlees ◽  
Robert McClelland
Keyword(s):  
Price Index ◽  
Price Change ◽  
Consumer Price Index ◽  
Quality Change ◽  
Quality Adjustment ◽  
Food Items ◽  
Major Trend ◽  
Retail Food ◽  
Model Approach

Most indexes in the Consumer Price Index (CPI) use a form of the “matched-model” approach. It is frequently assumed that this approach accurately reflects inflation for items that have no major trend in quality. In this paper we investigate that hypothesis using CPI data for retail food items. We find that CPI analysts may be correct on average when they decide that new and replacement items are similar in quality. We also find, however, that when sample items are replaced by items of significantly different quality the CPI imputation procedures may underestimate price change and overstate quality change.

scholarly journals Art investment in South Africa: Portfolio diversification and art market efficiency

2016 ◽  
Vol 19 (3) ◽  
pp. 358-368 ◽  
Author(s):  
Ferdi Botha ◽  
Jen Snowball ◽  
Brett Scott
Keyword(s):  
South African ◽  
Price Index ◽  
Stock Exchange ◽  
House Price ◽  
Art Market ◽  
Government Bond ◽  
The South ◽  
Bond Price ◽  
House Price Index ◽  
Significant Difference

Art has been suggested as a good way to diversify investment portfolios during times of financial uncertainty. The argument is that art exhibits different risk and return characteristics to conventional investments in other asset classes. The new Citadel art price index offered the opportunity to test this theory in the South African context. Moreover, this paper tests whether art prices are efficient. The Citadel index uses the hedonic regression method with observations drawn from the top 100, 50 and 20 artists by sales volume, giving approximately 29 503 total auction observations. The Index consists of quarterly data from the period 2000Q1 to 2013Q3. A vector autoregression of the art price index, Johannesburg stock exchange all-share index, house price index, and South African government bond index were used. Results show that, when there are increased returns on the stock market in a preceding period and wealth increases, there is a change in the Citadel art price index in the same direction. No significant difference was found between the house price index and the art price index, or between the art and government bond price indices. The art market is also found to be inefficient, thereby exacerbating the risk of investing in art. Overall, the South African art market does not offer the opportunity to diversify portfolios dominated by either property, bonds, or shares.

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