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Construction Of Hedonic Price Index For The “Most Liquid” Polish Painters

Author

Listed:
  • Kompa Krzysztof

    (Warsaw University of Life Sciences, Department of Econometrics and Statistics, Nowoursynowska 166, 02-787 Warszawa, Poland)

  • Witkowska Dorota

    (University of Lodz, Department of Finance and Strategic Management, Matejki 22/26, 90-237 Łódź, Poland)

Abstract
Art market has been developing in Poland and the first Art Fund was established in 2011. Therefore it seems that investment in art can be considered as alternative form by Polish investors. In order to decide whether art is a good investment, it is necessary to evaluate expected returns which might be obtained from such investment thus an art price index should be developed. The aim of the paper is to discuss artworks as investment assets and evaluate price index of paintings produced by 11 Polish artists whose artworks were traded the most often on auctions that were held in Poland in the years 2007–2010. In our research, employing data concerning 750 objects, we apply the hedonic index methodology to estimate returns from the paintings market. The results of our investigation show that hedonic quality adjustment essentially influences evaluation of artwork prices therefore we propose the aggregated hedonic index which might better describe situation at the art market than the hedonic index biased by the specification of a single model.

Suggested Citation

  • Kompa Krzysztof & Witkowska Dorota, 2014. "Construction Of Hedonic Price Index For The “Most Liquid” Polish Painters," Folia Oeconomica Stetinensia, Sciendo, vol. 14(2), pages 76-100, December.
    • Handle: RePEc:vrs:foeste:v:14:y:2014:i:2:p:76-100:n:4
    DOI: 10.1515/foli-2015-0004
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    art market; hedonic price index; investment;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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