Retransformation bias in the adjacent art price index
The literature on hedonic price indices, such as the adjacent art price index, often uses a logarithmic transformation of the price data to deal with the non-normality. However, this creates the problem of retransforming the predictions back to an economically meaningful scale. This paper investigates the impact of dealing with the retransformation problem for estimates of art market returns. The empirical results show how failure to allow for retransformation may result in a biased price index
|Date of creation:||Jul 2011|
|Date of revision:||Jul 2011|
|Contact details of provider:|| Web page: http://www.culturaleconomics.org/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Corinna Czujack, 1997. "Picasso Paintings at Auction, 1963–1994," Journal of Cultural Economics, Springer, vol. 21(3), pages 229-247, September.
- Victor Ginsburgh & David Throsby, 2006.
"Handbook of the Eonomics of Art and Culture,"
ULB Institutional Repository
2013/152412, ULB -- Universite Libre de Bruxelles.
- Manning, Willard G., 1998. "The logged dependent variable, heteroscedasticity, and the retransformation problem," Journal of Health Economics, Elsevier, vol. 17(3), pages 283-295, June.
When requesting a correction, please mention this item's handle: RePEc:cue:wpaper:awp-01-2011. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Juan Prieto-Rodriguez)
If references are entirely missing, you can add them using this form.