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

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  • Zanola, Roberto

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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    More about this item

    Keywords

    sample selection; Picasso; repeat sales; prints; price index;
    All these keywords.

    JEL classification:

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

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