This thesis explores factors that determine the price for Australian art sold at auction. Using a large data set that comprises over 20,000 sale observations of Australian paintings sold between 1995 and 2003 characteristics associated with the artist, the work and auction are included in a series of hedonic models. In addition to modelling the overall market, differences within defined market segments for Indigenous and Non-indigenous art are explored. The role of artist identity and critical acclaim, the period in which art works are created and the event of an artist death are areas of specific focus within the analysis along with an investigation of the risks and returns associated with Australian art investment. It is found that artist identity is a crucial factor that drives price. Further, the most highly valued Non-indigenous art works are found to be created prior to 1900, although the market for Contemporary art produced post 1980 is associated with relatively high prices also. Distinctions emerge between Indigenous and Non-indigenous art as we consider the period in which works are created and the influence this has upon price. Almost 90 per cent of Indigenous art sold at auction has been created since 1970 and it is works from the 1970s that command the highest prices for Indigenous art sold at auction. This is not unexpected given the rise of Indigenous art in the early 1970s coinciding with the emergence of the Papunya Tula art movement. The death of an artist also proves to have a different influence upon price when we compared Indigenous and Non-indigenous art. For Non-indigenous art there is clear evidence of a death effect upon art prices, where prices typically rise around the time of an artists death before falling back somewhat with the passing of time. For Indigenous art the influence of a living artist's conditional life expectancy upon price proves to be of greater relevance in explaining price where as the artist ages and the term of their life expectancy reduces prices tend to rise. The analysis within this thesis finishes with the construction of a number of short term art price indices where it is found that returns to investment in Indigenous art are generally higher and less risky compared to Non-indigenous art. Australian art generally and Indigenous art in particular is found to have a relatively weak correlation with the stock market suggesting that Australian art has a role to play in a balanced investment portfolio especially taking into account the aesthetic utility that can also be derived as a result of holding art. The research contributes to understanding how the auction market for Australian art operates with emphasis paid to the distinctions and similarities observed within the sub-markets for Indigenous and Non-indigenous art. Insights from this research have the potential to inform public policy on a number of issues including the effect of resale royalties upon the operation of the auction market, and how indigenous economic development may be facilitated through a strong market for Indigenous art.

[Truncated abstract] This thesis consists of six chapters, and the main research contributions are contained in chapters two through five inclusive. The topics addressed in each chapter are distinct, but related, and the specific contributions to knowledge made by the different chapters are related to: (i) understanding more fully the nature of the demand for alcohol; (ii) explaining the relationship between reputation characteristics and consumers’ willingness to pay for wine; (iii) estimating the rate of return to Australian wine; and (iv) using financial analysis to reveal the risk diversification benefits available by including wine in an investment portfolio. The details of each contribution are briefly outlined below. Chapter 2 discusses the nature of the demand for alcohol. The demand for alcoholic beverages is an area much studied, and there are numerous studies estimating the own-price elasticity of alcoholic beverages. A review of relevant published studies indicates reported: beer own-price elasticity estimates range from -.02 to -3.00, with a mean estimate value of -.46, and standard deviation of -.41 (n = 139); wine own-price elasticity estimates range from -.05 to -3.00, with a mean estimate value of -.72, and standard deviation of .53 (n = 140); and spirits own-price elasticity estimates range from -.01 to -2.18, with a mean estimate value of -.74, and standard deviation of .47 (n = 136). Chapter 2 contributes to understanding the demand for alcohol, not by adding yet another set of elasticity estimates to an already substantial literature, but by providing a framework through which all known own-price elasticity estimates can be understood. Specifically, a meta-regression framework is employed to study previously published own-price elasticity estimates. This framework allows the effect of model design attributes to be isolated, and the underlying trend in consumer responses to price changes to be identified.

The empirical paper studies the relationship between property value and hedonic attributes. To indentify the determinant characteristics the influent the private real estate price, their degrees of significance and help with the valuation procedure, 8870 private residential property transactions with caveats lodged across country are selected from Urban Redevelopment Authority of Singapore. 40 models are tested and RMSE, R-Square, Adjusted R-Square, F-Value tests are performed to discover the overall fitness of the models. Breusch-Pagan F-Test is performed to test the existence of heteroskedasticity and VIF test to check multicolinearity. Z score is performed to check the spatial autocorrelation. Three founding are discovered. Firstly, size, age, floor level, population density level, latitude and construction status are core attributes resulting from the regression. Secondly, new district zones classified by functions are detected instead of 28 administrative districts. Thirdly, government policies and local customs (Feng Shui) are proven to be determinant variables as well. Two suggestions are given to regulate the market in the end of this article.

The primary purpose of this study was to examine the contribution of family-recreation amenities to home valuation in Southern Arizona communities. Although recreation amenities have become a frequent addition to housing developments, little research exists regarding the value these amenities contribute to home valuation. The sample consisted of 600 homes in master-planned communities and 600 homes in comparable traditional subdivisions. Using the hedonic pricing method, this study examined whether the inclusion of recreation amenities provides additional value to homes after structural and locational characteristics were controlled for. Blocked multiple regression analyses were used to determine the contribution of both individual and bundled recreation amenities to home valuation. The results of this study revealed a positive significant relationship between the bundle of community parks, neighborhood parks, and trails located within master-planned communities and home valuation, accounting for 17.45% of home value in this sample. In addition, the inclusion of family-recreation programming was found to contribute 6.82% of home value within master-planned communities. The findings suggest the inclusion of recreation amenities may be an appropriate way to revitalize communities, to increase the tax base for new housing developments, and to attract residents during a time of economic recession.

Master of Science / Department of Agricultural Economics / Ted C. Schroeder / Value-added management at the cow-calf level is integrated across breeding, health and nutrition programs. Hedonic pricing models are necessary to navigate through the layered management standards imposed by certified health and marketing programs on the cow-calf sector. Previous research in feeder calf pricing models provides insight on the use and development of ordinary least squares in estimating price effects. Breed, vaccination program, age-and-source verification and natural-beef production have become more relevant as vertical coordination has influenced commercial cow-calf producers. This study provides the industry with new information pertaining to the revenue opportunities that exist for cow-calf producers through increased coordination in the beef industry. Video and satellite auction markets are recognized as a national pricing mechanism for feeder cattle in the United States. These markets represent the management and marketing practices of national cow-calf producers and the tastes and preferences of a national stocker and feedlot industry. Previous research in feeder cattle pricing models is applied to the current genetic, management, marketing and market structure information from video auction markets to discover relevant price effects pertaining to value-added calf production. More intensive value-added management practices were expected to enhance the revenue of cow-calf producers selling their calves through video auction markets. This research confirms that verified health and genetic claims produce higher calf prices compared to commodity calves. Weaned calves with at least two rounds of respiratory vaccinations generated an additional $5.50 to $7.50 per cwt., and weaning created $2.75 to $4.50 per cwt. in premiums over non-certified health programs. There were statistical differences among the premiums for each aggregated breed influence, and Angus and black and black-white faced cattle offered the highest breed premiums at $5.25 to $7.50 per cwt. compared to Brahman-influenced calves. Age-and-source verification presents the best opportunity for video auction market premiums among recently developed marketing programs. Statistically significant premiums ranged from $1.25 to $2.00 per cwt. for both steers and heifers over the last five years.

Este estudo visa compreender a relação entre os atributos intrínsecos e extrínsecos do produto calça jeans e o seu preço no varejo, tendo como objetivo específico analisar a influência separadamente dos atributos intrínsecos e extrínsecos sobre os preços. Para tanto, utiliza-se da teoria de atributos proposta por Lancaster (1966) e dos métodos de preços hedônicos propostos por Rosen (1974), por meio dos quais é possível observar a importância dos pacotes de atributos intrínsecos e extrínsecos sobre os preços, bem como observar a constituição de pacotes de atributos para diferentes perfis econômicos de consumidores. Foram analisadas 12 categorias de atributos sendo 5 de atributos intrínsecos e outras 7 de atributos extrínsecos. A coleta de dados foi realizada por meio de observação e a pesquisa foi realizada no período de 01 de julho a 31 de julho de 2015 nos maiores shoppings centers e principais lojas de ruas de São Paulo. A partir dos dados coletados, foram realizadas regressão múltipla e a regressão quantílica. A regressão múltipla apresentou o R2 de 58%, nessa análise os principais atributos que influenciam são: loja premium, venda assistida, origem da loja, tamanho da loja (megaloja), tamanho da loja (ampla), lavagem destroyed, resina, modelo flare, lavagem dirty, localização da loja (rua ou shopping), complementos, modelo skinny insumos elastano e poliéster. A regressão quantílica proporciou a análise para 10% das calças mais caras e para os 10% das calças mais baratas. Para as calças mais caras o R2 é de 45% para as calças mais caras há mais atributos extrínsecos do que atributos do produto interferindo no preço, são eles: os insumos poliéster e elastano, lavagem e resinagem, origem da marca da loja, posicionamento da marca, venda assistida, localização da loja, cartão de crédito - private label (nesse caso influenciando negativamente), e tamanho da loja, todos extrínsecos ao produto, se mostraram relevantes para o processo de precificação das calças jeans mais caras observadas nesse estudo. Já para as calças mais baratas, com R2 de 27%, parece haver um equilíbrio entre o número de variáveis intrínsecas e extrínsecas que interferem no preço das calças jeans mais baratas, pois somente a modelagem (atributo intrínseco) e cartão private label (atributo extrínseco) parecem não interferir na precificação. Concluiu-se que há mais atributos extrínsecos que influenciam o preço da calça jeans no varejo. / This study aims to understand the relationship between intrinsic and extrinsic attributes of jeans and its retail price, with the specific objective to analyze the influence separately from intrinsic and extrinsic attributes on prices. To do so, it uses the attributes of theory proposed by Lancaster (1966) and hedonic pricing methods proposed by Rosen (1974), through which it is possible to see the importance of intrinsic and extrinsic attributes packages on prices and to observe the constitution attributes of economic packages for different consumer profiles. 12 categories of attributes, 5 of intrinsic attributes and other 7 extrinsic attributes were analyzed. Data collection was carried out through observation and the survey was conducted in the period from July, 1st to July, 31st, 2015 in major shopping malls and main streets of São Paulo stores. The collected data was analyzed through multiple regression and quantile regression. Multiple regression showed a R2 of 48%, according to this analysis the attributes that influence are: premium store, assisted sale, shop origin, size of the store (superstore), store size (large), destroyed wash, resin application, flare model, dirty wash, store location (street or shopping), accessories, skinny model spandex inputs and polyester. The quantile regression, pointed analysis for 10% of the most expensive jeans and for 10% of the cheapest jeans. For the most expensive pants, R2 is 45% the extrinsic attributes interfering in the price more than product attributes, they are: polyester inputs and spandex, washing and resin application, the origin for store brand, brand positioning, assisted sale, store location, credit card -private label (in this case presenting a negative influence) and size of the store, all extrinsic to the have shown to be relevant to the process of pricing of the most expensive jeans observed in this study. As for the cheapest pants, with R2 of 27% seems to be a balance between the number of intrinsic and extrinsic variables that affect the price of the cheapest jeans, modeling (intrinsic attribute) and private label (extrinsic attribute) do not seem to interfere in pricing. It was concluded that there are more extrinsic attributes that influence the jeans of the retail price.

O presente estudo mensura o impacto no preço dos atributos de qualidade nos tourinhos da raça Nelore comercializados em leilões por meio de uma metodologia específica, baseada na Teoria dos Preços Hedônicos. Para tanto, utilizou-se como amostra três leilões - 368 observações - de uma fazenda padrão, o Nelore Jandaia. Assim, os atributos dos animais que mais contribuíram para a formação dos preços, em um primeiro plano, foram: a qualidade genética como um todo, expressa através do Mérito Genético Total - MGT, e a qualidade fenotípica global, demonstrada pelo índice EPMURAS. Em um segundo plano, mais específico, agregaram mais valor aos jovens reprodutores características relacionadas à precocidade e fertilidade do lado genético a Diferença Esperada na Progênie - DEP para perímetro escrotal aos 365 dias (dpe365) e no lado fenotípico a nota de precocidade. Por exemplo, os animais com MGT excelente tiveram um prêmio médio de 22% a mais em relação aos considerados como bons, paralelamente os com EPMURAS excelente tiveram um prêmio de 11% em relação aos classificados como muito bons, ceteris paribus. Para cada ponto a mais na precocidade e na DEP dpe365 o valor dos animais comercializados aumenta em, respectivamente, 5% e 5,8%, ceteris paribus. Do exposto, pode-se concluir que se os pecuaristas dedicados ao melhoramento dos seus rebanhos privilegiarem em seus objetivos de seleção animais com excelentes atributos de fertilidade e precocidade receberam prêmios superiores por isso. Em outras palavras, focar a seleção em precocidade e fertilidade agrega valor aos animais. / This study measures the impact on the price of quality attributes in Nelore steer sold at auction by a particular methodology, based on the theory of hedonic prices. To this end, we used as a sample three auctions - 368 observations of a standard farm, Nelore Jandaia. Thus, the attributes of animals that contributed most to the price formation were the genetic quality as a whole, expressed through the Total Genetic Merit - MGT, and the overall phenotypic quality, as demonstrated by the index EPMURAS. In a second model, more specific, added more value to young breeding characteristics related to precocity and fertility - the genetic side of the Expected Progeny Difference - EPD for scrotal circumference at 365 days (dpe365) and on the phenotypic note of precocity. For example, animals with excellent MGT had an average premium of 22% more than for those considered as good, along with the excellent EPMURAS had a premium of 11% over rated as very good. For each point on precocity and DEP dpe365 the value of animals traded increases, respectively, 5% and 5.8%, ceteris paribus. From the above, we conclude that if the farmers devoted to the improvement of their herds give priority in their selection goals animals with excellent attributes of fertility and precocity will receive premium for it. In other words, focus the cattle selection on fertility and precocity adds value to animals.

<p>This study identifies the determinants of sheep prices for small-scale sheep farming households in two districts of the Eastern Cape, namely Amathole and Ukhahlamba (Joe Xabe). Output prices that small farm households receive for their sheep affect their incomes from agriculture (knowing that revenue is a product of quantity and price), which, in turn, influence their living standards. The study isolates three sets of determinants of price formation in local agricultural markets - structural drivers, institutional factors and livelihood shocks - to account for the variations in prices that smallholder farmers receive. Data were collected from 134 households that were selected using purpose sampling and preceded by key informant and focus groups interviews with actors along the sheep value chain. A questionnaire consisting of both open-ended and quantitative questions was used. The relationship between output price formation and clusters of determinants is a typical hedonic pricing framework, which is fitted using a backward stepwise econometric technique that is a widely used experimental tool to identify significant determinants.</p>

Rapid technical progress has increased the speed of quality change. Its impact has a large scale effect on a broad set of variables and it has exacerbated a latent economic problem on the measurement of true economic variables. For example, the reliability of the Consumer Price Index (CPI) has been increasingly undermined since it has been argued that price indexes suffer either an upward or a downward bias due to quality change in goods and services. This paper is aimed to be a comprehensive survey on historical contributions to modeling quality from a theoretical perspective. The fundamental contributions of several economists are framed into a coherent building block. We construct a general framework for quality adjustment in price index theory which helps to understand the importance of economic theory for price index definitions. Supply and demand side models are analysed and merged into Rosen (1974) model, the first well grounded attempt to construct a general equilibrium explanation to quality choices. First, we address the issue of quality measures into price index theory. Then, we present a survey of the relevant contributions to hedonic price modeling. We focus on two main fields of applied analysis: (1) determining how the price of a unit of commodity varies with the set of attributes; (2) estimating the demand and supply functions for the attributes of products. The open issues on quality adjustment in consumer price indexes will be analysed in the two applied papers, namely chapter 3 and chapter 4. They are two applied original contributions to hedonic price literature. Chapter 3: In this paper we show that a real time measure of pure price change for different varieties of non durable volatile and seasonal products is possible. Moreover, we introduce the idea of unobservable elements captured by brand specific and by time specific dummies. In order to compute a pure price index, a theoretically correct quality adjustment procedure has been determined where quality is measured in terms of attributes (Griliches, 1971a, 1971b; Tauchen and Witte, 2001; Pakes, 2003; Ekeland et al. 2002, 2004; Triplett 2004) and it is becomes a ’fundamental’ of the market. We have analyzed the prices of apples and oranges traded in the General Milan Market for fruit and vegetables. We have used a large amount of information from more than 8000 of observations collected between 2000 and 2004. We have found that quality is changed over time even if new goods/varieties were not introduced. Price levels adjusted for qualitative levels, measured in terms of the content of characteristics, are above the Laspeyres hedonic price index on average for apples whilst the pure price index for oranges is close to the Laspeyres price index. Our empirical analysis shows that a price index, which does not account for quality change, is underepresiting inflation for apples and correctly measuring price changes for oranges. Chapter 4: The relevant literature dealing with the problem of quality measurement in passenger cars (inter alias, Ohta and Griliches 1976, 1983; Lancaster (1966), Rosen (1974), Berry et al. 1995; 2004) relies on general hedonic imputation methods for the assessment of the quality adjusted price index. We deviate from this standard approach by computing a new quality adjusted index for cars based on a weighted adjustment procedure which accounts for attrition due to observable elements (Fitzgerald et al., 1998; Nevo, 2003; Horowitz and Manski, 1998). By doing this, we are able to define a quality adjusted price index which generates a more accurate identification of price index levels than the current state of the art. We use data for the universe of new cars and their characteristics, sold between 2000 and 2007 in Italy, and we identify the basic reference unit. Based on this we study the pricing behavior of the firms. We model a non random and non ignorable selection process based on an entry/exit process of cars (Olly and Pakes, 1996) due to profit maximizing firms in a differentiated product space. We find that the official index is overestimating inflation since our results point to a mild deflation. However we show that traditional hedonic techniques lead to an overestimation of quality improvement and consequently they under-estimate inflation.

<p>This study identifies the determinants of sheep prices for small-scale sheep farming households in two districts of the Eastern Cape, namely Amathole and Ukhahlamba (Joe Xabe). Output prices that small farm households receive for their sheep affect their incomes from agriculture (knowing that revenue is a product of quantity and price), which, in turn, influence their living standards. The study isolates three sets of determinants of price formation in local agricultural markets - structural drivers, institutional factors and livelihood shocks - to account for the variations in prices that smallholder farmers receive. Data were collected from 134 households that were selected using purpose sampling and preceded by key informant and focus groups interviews with actors along the sheep value chain. A questionnaire consisting of both open-ended and quantitative questions was used. The relationship between output price formation and clusters of determinants is a typical hedonic pricing framework, which is fitted using a backward stepwise econometric technique that is a widely used experimental tool to identify significant determinants.</p>