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Fair Revaluation of Wine as an Investment

Author

Listed:
  • Bocart, Fabian Y.R.P.
  • Hafner, Christian M.

Abstract

The price of wine is a key topic among market participants interested in valuing their stock, including dealers and restaurants, and consumers who may be interested in optimizing their purchases. A closely related issue, revaluation is the need to regularly update the value of a stock. This need is especially acute in the growing industry of wine as an investment. In this case, fair-value measurement is compulsory by law. We briefly review methods available to funds and introduce a new quantitative method aimed at achieving compliance with IFRS (International Financial Reporting Standard) 13 for fair valuation. Using auction data on 26,640 lots, we apply this method to compute the current fair value of a basket of 232 different wines. (JEL Classifications: C14, C43, Z11)

Suggested Citation

  • Bocart, Fabian Y.R.P. & Hafner, Christian M., 2015. "Fair Revaluation of Wine as an Investment," Journal of Wine Economics, Cambridge University Press, vol. 10(2), pages 190-203, November.
    • Handle: RePEc:cup:jwecon:v:10:y:2015:i:02:p:190-203_00
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    Citations

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    Cited by:

    1. Joyce P. Jacobsen, 2024. "Wine as an Investment," Wesleyan Economics Working Papers 2024-007, Wesleyan University, Department of Economics.
    2. Connor, Linda H., 2016. "Energy futures, state planning policies and coal mine contests in rural New South Wales," Energy Policy, Elsevier, vol. 99(C), pages 233-241.
    3. Ben Ameur, Hachmi & Le Fur, Eric, 2020. "Volatility transmission to the fine wine market," Economic Modelling, Elsevier, vol. 85(C), pages 307-316.
    4. Adam Sȩdziwy, 2015. "Sustainable Street Lighting Design Supported by Hypergraph-Based Computational Model," Sustainability, MDPI, vol. 8(1), pages 1-13, December.
    5. NESTEROV, Yurii, 2013. "Universal gradient methods for convex optimization problems," LIDAM Discussion Papers CORE 2013026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. CORNUEJOLS, Gérard & WOLSEY, Laurence & YILDIZ, Sercan, 2013. "Sufficiency of cut-generating functions," LIDAM Discussion Papers CORE 2013027, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Hare, Stephanie, 2016. "For your eyes only: U.S. technology companies, sovereign states, and the battle over data protection," Business Horizons, Elsevier, vol. 59(5), pages 549-561.
    8. Chiara Canta & Marie-Louise Leroux, 2016. "Public and Private Hospitals, Congestion, and Redistribution," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 18(1), pages 42-66, February.
    9. Eric Le Fur & Jean-François Outreville, 2019. "Fine wine returns: a review of the literature," Journal of Asset Management, Palgrave Macmillan, vol. 20(3), pages 196-214, May.
    10. WOLSEY, Laurence & YAMAN , Hand & ,, 2013. "Continuous knapsack sets with divisible capacities," LIDAM Discussion Papers CORE 2013063, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    11. Bocart, Fabian Y.R.P. & Hafner, Christian M., 2015. "Fair Revaluation of Wine as an Investment," Journal of Wine Economics, Cambridge University Press, vol. 10(2), pages 190-203, November.
    12. Poeschel, Friedrich, 2012. "Assortative matching through signals," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62061, Verein für Socialpolitik / German Economic Association.
    13. MLINAR, Tanja B. & CHEVALIER, Philippe, 2013. "Pooling in manufacturing: do opposites attract?," LIDAM Discussion Papers CORE 2013040, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

    More about this item

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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