A new heteroskedastic hedonic regression model is suggested which takes into account time-varying volatility and is … expectation. The art price index is a smooth function of time and has a variability that is comparable to the volatility of stock …

. In order to test the model's implications on expected volatility we compute option prices under the generated hazard … volatility in general is downward sloping and its overall level falls steadily over time, although it may exhibit initially a … hump shape in the case of very low initial reputation. In time series without a policy reversal, implied volatility from …