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Fair re-valuation of wine as an investment

Author

Listed:
  • BOCART, Fabian

    () (Université catholique de Louvain, ISBA, Belgium)

  • HAFNER, Christian

    () (Université catholique de Louvain, CORE & ISBA, Belgium)

Abstract

The prices of wine is a key topic for market participants interested in valuing their stock, including dealers, restaurants or consumers who may be interested in optimizing their purchases. As a closely related issue, re-valuation is the need to regularly update the value of a stock. This need is especially met by fund managers 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 meeting IFRS 13 compliance for fair valuation. Using auction data, we apply our method to compute current fair value of a basket of wines.

Suggested Citation

  • BOCART, Fabian & HAFNER, Christian, 2013. "Fair re-valuation of wine as an investment," CORE Discussion Papers 2013025, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2013025
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Adam Sȩdziwy, 2015. "Sustainable Street Lighting Design Supported by Hypergraph-Based Computational Model," Sustainability, MDPI, Open Access Journal, vol. 8(1), pages 1-13, December.
    3. 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.

    More about this item

    Keywords

    IFRS13; hedonic regression; repeated sales; wine investment;

    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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