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intellectum
Article . 2022
License: CC BY NC ND
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Journal of Business Research
Article . 2022 . Peer-reviewed
License: Elsevier TDM
Data sources: Crossref
SSRN Electronic Journal
Article . 2019 . Peer-reviewed
Data sources: Crossref
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A Bayesian Dynamic Hedonic Regression Model for Art Prices

Authors: Garay, Urbi; Puggioni, Gavino; Molina, German; ter Horst, Enrique;

A Bayesian Dynamic Hedonic Regression Model for Art Prices

Abstract

Hedonic pricing models are based on the premise that the prices of marketed goods are related to their attributes. The traditional OLS regression applied to hedonic pricing models assumes that, when using time series, the estimated coefficients with respect to each of the attributes remain constant. This does not have to be the case. We propose a Bayesian dynamic estimation of the hedonic regression model in which the estimated coefficients are time-varying and apply it to art prices. We find that, using a sample of 27,124 paintings sold at auction by 63 Pop artists (2001-2013), the estimated coefficients from the dynamic regression model fluctuate noticeably through time, and also that certain types of artworks, which might be regarded as “safer”, declined in price by less than less safer paintings during the financial crisis (2008-2009). We also estimated a Pop-Art price index, finding that, in the semesters prior to the crisis, Pop-Art prices increased much faster than what an OLS estimation would have suggested.

Country
Colombia
Keywords

Modelo de regresión hedónica, Inversiones alternativas, El arte regresa, Análisis bayesiano

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
5
Top 10%
Average
Average
Green