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The Dynamics of Art Prices: The Selection Corrected Repeat-Sales Index

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  • Zanola, Roberto

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Abstract

The repeat-sales model controls quality by utilizing the transacted prices of the same items in di.erent time periods. However, this methodology suffers from non-randomness of the data, implying that a sample based only on repeat-sales items may not represent the population of properties. To address this potential problem, the Heckman two-stage procedure has been applied to a sample of Picasso prints over the period 1988-1995 as registered in the 1995 edition of the Mayer International Auction Records on CD-ROM. Empirical evidence shows that the selection corrected repeat-sales model yields substantially better goodness of fit than the estimated standard repeat-sales specification.

Suggested Citation

  • Zanola, Roberto, 2007. "The Dynamics of Art Prices: The Selection Corrected Repeat-Sales Index," POLIS Working Papers 76, Institute of Public Policy and Public Choice - POLIS.
  • Handle: RePEc:uca:ucapdv:76
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    File URL: http://polis.unipmn.it/pubbl/RePEc/uca/ucapdv/zanola85.pdf
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    References listed on IDEAS

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    Cited by:

    1. Marchese, Carla & Privileggi, Fabio, 2007. "Increasing the efficiency of the 'Studi di Settore' might backfire," POLIS Working Papers 83, Institute of Public Policy and Public Choice - POLIS.
    2. Ünsal Özdilek, 2013. "Visual autocorrelation of prices," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 37(2), pages 203-223, May.
    3. Stefania Ottone & Ferruccio Ponzano, 2011. "How people perceive the Welfare State: a real-effort experiment," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(2), pages 165-183, June.
    4. Privileggi, Fabio, 2007. "The cutoff policy of taxation when CRRA taxpayers differ in risk aversion coefficients and income: a proof," POLIS Working Papers 99, Institute of Public Policy and Public Choice - POLIS.
    5. Davide Ticchi & Andrea Vindigni, 2007. "War and Endogenous Democracy," Working Papers 0715, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2007.
    6. Daron Acemoglu & Davide Ticchi & Andrea Vindigni, 2010. "A Theory of Military Dictatorships," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 1-42, January.
    7. Marchese, Carla, 2008. "The limits to growth then and now," POLIS Working Papers 105, Institute of Public Policy and Public Choice - POLIS.
    8. Montefiori, Marcello & Resta, Marina, 2008. "Social influence and neighbourhood effects in the health care market," POLIS Working Papers 98, Institute of Public Policy and Public Choice - POLIS.
    9. Bissey, Marie-Edith & Ortona, Guido, 2007. "The program for the simulation of electoral systems ALEX4.1: what it does and how to use it," POLIS Working Papers 82, Institute of Public Policy and Public Choice - POLIS.
    10. Stefania Ottone & Ferrucio Ponzano & Roberto Ricciuti, 2009. "Simulating Voting Rule Reforms for the Italian Parliament: An Economic Perspective," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 3(3), pages 292-304, October.
    11. Helen Higgs & John Forster, 2014. "The auction market for artworks and their physical dimensions: Australia—1986 to 2009," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(1), pages 85-104, February.
    12. Bia, Michela, 2007. "The Propensity Score method in public policy evaluation: a survey," POLIS Working Papers 79, Institute of Public Policy and Public Choice - POLIS.
    13. Nandini Srivastava & Stephen Satchell, 2012. "Are There Bubbles in the Art Market? The Detection of Bubbles when Fair Value is Unobservable," Birkbeck Working Papers in Economics and Finance 1209, Birkbeck, Department of Economics, Mathematics & Statistics.
    14. Nicoletta Marinelli & Giulio Palomba, . "A Model for Pricing the Italian Contemporary Art Paintings at Auction," EHUCHAPS, Universidad del País Vasco - Facultad de Ciencias Económicas y Empresariales.
    15. Breton, Albert & Scott, Anthony & Fraschini, Angela, 2007. "Explaining differences in environmental governance patterns between Canada, Italy and the United States," POLIS Working Papers 87, Institute of Public Policy and Public Choice - POLIS.
    16. Bia, Michela & Mattei, Alessandra, 2007. "Application of the Generalized Propensity Score. Evaluation of public contributions to Piedmont enterprises," POLIS Working Papers 80, Institute of Public Policy and Public Choice - POLIS.
    17. Stefania Ottone, 2008. "Are people Samaritans or Avengers?," Economics Bulletin, AccessEcon, vol. 3(10), pages 1-3.
    18. Ottone, Stefania & Ponzano, Ferruccio, 2007. "Non-self-centered inequity aversion matters. A model," POLIS Working Papers 91, Institute of Public Policy and Public Choice - POLIS.
    19. Marinelli, Nicoletta & Palomba, Giulio, 2011. "A model for pricing Italian Contemporary Art paintings at auction," The Quarterly Review of Economics and Finance, Elsevier, vol. 51(2), pages 212-224, May.

    More about this item

    Keywords

    sample selection; Picasso; repeat sales; prints; price index;

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • Z1 - Other Special Topics - - Cultural Economics

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