Estimates, Bias and “No Sales” in Latin-American Art Auctions, 1977–1996

Estimate bias and no-sales are investigated in the context of Latin American Art auctions conducted in New York between 1977 and 1996. We find that, using a new method for calculating bias, both Sotheby's and Christie's overestimated art (oil-on-canvas pieces) by 2.7 percent. The inclusion of no-sales raises that proportion to a full one-third of the art traded. Utilizing a binomial probit analysis, moreover, we find that the estimate window is negatively and significantly related to the likelihood of a no sale at auction.     

Determinants of Prices for Contemporary Art in Dutch Galleries, 1992–1998

We analyse determinants of prices for contemporary art with the help of quantitative data. The focus is on gallery rather than auction prices in the Netherlands. We model the determinants of prices on three different levels: the work of art (size, material), the artist (age, sex, place of residence, institutional recognition), and the gallery (location, institutional affiliation, age). Our main findings are that the size and material of works of art, and the age and place of residence of the artist are strong predictors of price; that differences in size and materials partly ``mask' price differences between artists; and that the variance in prices across galleries is largely explained by characteristics of the artists they represent.     

Are Multiple Art Markets Rational?

We advance and subsequently test the proposition thatmarkets for fine art are rational, namely, that, inthe determination of price, traders make use of allrelevant art historical and critical information, asrevealed by hedonic content analysis, as well as allinformation on authenticity of the works offered forsale. If true, the proposition has consequences forpublic policy. Museums optimize choices among art historicallysignificant authentic paintings distributed asstochastic rare events in the tertiary market for art. Such paintings have few, if any, art historicallyequivalent substitutes, causing the demand for suchworks of art to be extremely inelastic. Museums tendto buy at the top of the information curve; payingprices which exceed market averages for similar art. As a result, society pays the cost of institutionalrisk aversion. In contrast, collectors often purchaseart before all art historical information is complete,and often earn a reward for assuming a risk due toincomplete information (Singer, 1991; Pomerhene, 1994).Collectors who can borrow to accumulate the highestcategory art can consume the services of their artcollection at zero cost. Stochastic transferfunctions fitted to time series of sales volume at thetwo top international auction houses confirm thehypothesis that the highest category of art is a quasisubstitute for financial instruments (liquid wealth).     

Assessing Quality in Cultural Goods: The Hedonic Value of Originality in Rembrandt's Prints

The definition of quality, and its consistent assessment, is a fundamental issue when dealing with collectibles. We analyze how originality is priced by the market. The market for prints by Rembrandt is considered. An original database has been built including almost 5,000 transactions in the international auction market during the period 1985–1998. The data allow us to control for many different characteristics (market, aesthetic, originality, authenticity, rarity, art history, techniques, conservation, etc.). The concept of “state” is used to measure originality. In printmaking a state is defined as the artist's creative phase, which occurs on the plate before inking and printing. We test whether (non-original) posthumous states are sold at prices lower than Rembrandt's own (original) states. The implicit price associated with the state has been found to significantly decrease if the state was later printed by someone else when it was no longer the master's intervention on the plate. Furthermore, a decreasing value among subsequent original states has proved to positively account for Rembrandt's direct invention. JEL classification: Z11, D46, C52     

Art and technology: A comparative study of policy legitimation

The legitimation of technology policy is discussed from the point of view of the neoclassical and of the dynamic, Schumpeterian, approach. The results are presented, using the traditional categories of policy legitimation in welfare theory: public goods, externalities, and merit goods. Art policy legitimation is discussed within the same conceptual framework. The application of the dynamic approach to art policy leads to conclusions similar to the general conclusions about technology policy. A review of the postwar development of (Dutch) art policy supports the impression that art policy may be on its way to become a subspecies of technology policy.     

International Trade in Art

This paper investigates the extent to which trade theory is applicable for explaining trade in art. Reproducible art is distinguished from unique art and it is argued that the trade in reproducible art is, at least in principle, governed by the same economic laws as trade in other differentiated products. However, trade theory needs to be amended in order to account for the addictive character of art consumption: culture specific consumption capital is built up with art consumption. Moreover, trade in unique art is mainly trade between consumers, a phenomenon largely ignored by standard trade theory. Empirical evidence on trade in art is presented and a gravity model of international trade in works of art is estimated. Finally, the paper discusses open questions for future research.     

Art Museums: Collections, Deaccessioning and Donations

This paper looks at three issues: the functions of art museums, the role of deaccessioning in this context and the importance of donations of works of art in contributing to the collection function. Donor restrictions it is argued should not be allowed to unduly influence the policy of an art museum, including that in relation to deaccessioning: this is especially the case given that often the state has paid, in the form of a tax expenditure, for the bulk of such donations.     

Canadian versus American Art: What Pays Off and Why

This study investigates the relationship between the market value of artand the nationality of the painter. A sample of modern and contemporaryCanadian and American paintings is analyzed using non-parametric testsand a hedonic regression model. The results show a significantrelationship between aesthetic painting characteristics, such as subjectmatter, and market valuation. In general, the price of Canadian art iswell below that of American art. Even after adjusting for paintingcharacteristics, Canadian paintings appear to be less expensive still.It is believed that Canadian painters looked at the Northern landscapeto define a national identity, thus playing to a limited audience, theonly that could relate to the beauty of the Canadian scenery. Thisprogrammatic approach could explain some of the aforementioneddifferences in market valuation.     

The Competition between High Culture and Popular Culture as Seen in the New York Times

The Sunday “Arts and Leisure” section of the New York Times for selected years is examined to gauge competition between “high” culture and “popular” culture. From 1962 through 1988 high culture consistently outranked popular culture in percentage of articles, but after 1988 popular culture gained steadily, and by 1993 accounted for 49 percent of articles as compared with only 39 percent for high culture. Most of the gain was accounted for by coverage of motion pictures. For two out of four sub-categories a significant correlation was found between editorial content and advertising, so that one cannot reject the hypothesis that advertising affects editorial coverage. This revised version was published online in August 2006 with corrections to the Cover Date.     

A Note on Financial Risk, Return and Asset Pricing in Australian Modern and Contemporary Art

In this note, 30,227 paintings by fifty well-known modern and contemporary Australian artists sold at auction over the period 1973–2003 are used to construct a hedonic price index. The attributes included in the hedonic regression model include the name, age and living status of the artist, the number of works sold, the size and medium of the painting, and the auction house, month and year in which the painting was sold. The results indicate that returns on Australian modern and contemporary art averaged nearly five percent over the period with a standard deviation of sixteen percent. The results also show that a ten percent increase in the Australian stock market is associated with a 3.4 percent increase in the art market. Generally, artworks by artists deceased at the time of auction, larger works, works executed in oils, and those auctioned by Sotheby's or Christies in July or August are associated with higher prices.     

The Market for Picasso Prints: A Hybrid Model Approach

Two basic approaches have been used by the literature focusing on the return to holding artistic works: the hedonic price model and the repeat-sales model. This paper provides a procedure for jointly estimating the two models in a way that take advantages of the unique information contained in each. A semiannual price index for Picasso prints is estimated by using a model derived from the basic framework of the hybrid models. The empirical results suggest that the hybrid model provides the most precisely estimated price index by reducing the level of price volatility.JEL Classification: C5, Z1p     

The Sculpture Market: An Adjacent Year Regression Index

This paper analyses the performance of an investment in sculpture during theperiod 1987–1995 by applying the hedonic price technique with time dummyvariables to a sample of over 27,000 sales at auctions. The main finding isthat the adjacent year price index differs substantially between theinexpensive/middle portfolio and the expensive portfolio. The first showsthe existence of a boom period until 1990, followed by a non boom period. Bycontrast, the return of an investment in the expensive portfolio performedsomewhat better during the period analysed, with the only fall in the priceindex in 1990 and 1991.     

Optimal timing of movie releases in ancillary markets: The case of video releases

The optimal time for the release of a film in the video market is derived theoretically and shown to depend on characteristics of its cinema performance and on several other parameters. It is empirically confirmed that the model can explain the changing film release patterns in the years of video market growth. The model can also be applied to other ancillary markets for motion pictures as well as to paperback releases of books.     

In Search of Stylized Facts on Art Market Prices: Evidence from the Secondary Market for Prints and Drawings in Italy

In the paper we develop some price indices for the secondary market forprints and drawings in Italy for the period 1977–1999. Theempirical evidence suggests the emergence of causal links from thepainting series and consumer price series to the print and drawingsprice series. Within the secondary market, the drawings price seriesprecedes the print price series.     

The Impact of the National Endowment for the Arts in the United States: Institutional and Sectoral Effects on Private Funding

This paper examines the impact of the National Endowment for the Arts on private donations to the arts. The aim of the analysis is to assess whether public funding generates a crowding effect on private giving. We distinguish between institutional and sectoral crowding phenomena and discuss their possible implications.We used both a qualitative approach and an econometric model to estimate the effect of NEA introduction and appropriations on donations. Our results suggest that at the institutional level NEA grants do not generally induce donations to recipients while at the sectoral level appropriations and private giving are independent. The introduction of the agency appears to have caused a decrease in donations.     

Lope de Aguirre,the Tyrant,and the Prince: Convergence and Divergence in Postcolonial Collective Memory

Abstract

In Latin America, collective remembering is shaped by stories of colonizers whose voracious ambitions left an indelible mark on the landscape and its people. This essay examines a set of narratives about a legendary colonizer, Lope de Aguirre, that continue to be invoked in the collective imagination on the island of Margarita, in Venezuela. Drawing on Bormann's Symbolic Convergence Theory and Bakhtin's work on cultural discourse, this analysis shows that on the one hand, the narratives converge to support official records of Aguirre as an archetype of colonial brutality. Yet on the other, alternate versions of the stories reveal a more discordant picture, one that complicates Aguirre's character and reevaluates his influence on the island and in the wider context of Latin America.     

State Support and Creativity in the Arts: Some New Considerations

Neglected aspects of state support for the arts are discussed through posing two questions. First, “What kind of state is providing that support?” The extent and type of public support and its effects on the arts crucially depends on whether the state is centralised or decentralised, and on whether it is authoritarian or democratic. Second, “How is artistic creativity fostered?” ”Institutional creativity” is best supported by attributing a large role to the market and market-like institutions. “Personal creativity” hinges on intrinsic motivation, which may be crowded out by different types of public support. Important consequences for the public support of the arts follow.     

The Willingness-to-Pay for the Royal Theatre in Copenhagen as a Public Good

In this paper some of the results of a Contingent Valuation (CV)-Study of the Royal Theatre in Copenhagen, Denmark, are presented. The estimated aggregated willingness-to-pay (WTP) for the Royal Theatre through taxes shows that the Danish population wants to pay at least as much as the theatre receives in public subsidies. The visitors comprise only about 7 per cent of the total population, but the non-users' WTP is quite substantial which is the interesting point. It means that the non-users are willing to pay an option price and that the Royal Theatre has non-use value. This revised version was published online in August 2006 with corrections to the Cover Date.     

Half and Half: An (Auto)ethnography of Hybrid Identities in a Korean American Mother-Daughter Relationship

Abstract

This essay focuses on how immigrant mothers and second generation interracial daughters construct, perform, and negotiate racial and ethnic hybrid identities. Placing my mother's experiences in dialogue with my own experiences, I (auto)ethnographically examine how we navigate our mother-daughter relationship and intercultural and interracial identities in relation to discourses of Asian American-ness. I identify three sites for identity formation: location, language, and the dialectical tension of assimilation-preservation. I argue that the enactment of a racial self is not always a conscious part of one's identity. Rather, we each enact racialized cultural identities that are contextually performed and continuously shifting.     

Estimating the real growth effects of blockbuster art exhibits: A time series approach

This paper addresses the evaluation of real growth forecasts made by impact studies. Intervention analysis is used to estimate the ex post impact of blockbuster exhibits on economic growth in Jackson, Mississippi (chosen because state and local governments provide regular subsidies to finance the exhibitions). Non-farm employment measures real economic growth and dummy variables capture the occurrence of the exhibitions. Univariate time series techniques identify and estimate a stationary process after filtering the data for seasonal and cyclical effects. The analysis estimates the short run impact on Jackson’s filtered employment series due to the blockbuster exhibitions as approximately 700 jobs.