Semiparametric versus parametric hedonic wine price models: an empirical investigation |
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| Authors: | Lester M K Kwong Ling Sun |
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| Institution: | 1. Department of Economics, Brock University, St. Catharines, Canada;2. Cool Climate Oenology and Viticulture Institute, Brock University, St. Catharines, Canada |
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| Abstract: | In this article, we conduct formal statistical tests to compare a semiparametric hedonic wine price model with its parametric counterpart using a Canadian data set. The relevant test results turn out to be overwhelmingly in favour of the semiparametric specification. The estimated semiparametric model also provides clear evidence of nonlinearity between wine prices and quality when other wine attributes are controlled for. |
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| Keywords: | Hedonic model semiparametric model wine parametric model |
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