Financial returns,price determinants,and genre effects in American art investment

Past studies on art investment generally have found that returns are low and risk is high. In this study we find that the return to art investment is more in line with traditional investments and thus the cost for consumption associated with art seems fairly small. Employing a large sample of paintings by 66 American artists sold at auction between 1971–1992, average returns are found to be over 9 per cent and 3 per cent in nominal and real terms, respectively. The model employs a log linear price regression estimated by pooled cross section and time series data, and allows rates of return as well as hedonic values for various painting and auction attributes to be estimated. These include size, media, age of execution, authenticity of the work, and auction month and house. In addition, rates of return are differentiated by artist, time period of investment, price range and genre of the painting. The findings indicate significant sensitivity of rates of return to these data stratifications.This paper was presented at the 9th international conference of the Association for Cultural Economics, held in Boston, May 8–11, 1996.     

The school closure issue and the Chicano community: A follow-up study of theAngeles case

The present study is a follow-up study of theAngeles school closure case in which three predominantly Chicano elementary schools in Santa Barbara, California were closed due to declining enrollment in the District. Nearly 600 Chicano children were dispersed to five predominantly Anglo schools. The plaintiffs were a group of Chicano parents and their children, claiming the exclusive burden of the closures was placed on minorities. The present study is an attempt to investigate several adverse effects hypotheses predicted at the trial by the author who testified as an expert witness. Specifically, four major hypotheses were investigated that dealt with psychological maladjustment, academic decline, parental involvement decline, and adverse community impact. The subjects of the study were 50 respondent Mexican American mothers, randomly chosen from the closed schools' population. The respondents were primarily Spanish-speaking and of very low socioeconomic status. Based on the results of a comprehensive home interview, it was concluded that there is convincing evidence that the closures have indeed created a significant burden on a large majority of the children and their families. The long term implications of the closures are complex, but there is a strong possibility that the adverse impact of the closures will increase the already high probability of school problems and failure for the affected children as they progress through the educational system.