RETURNS FROM THE ART MARKET. PRICE INDEX EVALUATED FOR THE MOST-TRADED POLISH PAINTERS
RETURNS FROM THE ART MARKET. PRICE INDEX EVALUATED FOR THE MOST-TRADED POLISH PAINTERS

Summary/Abstract: Relatively new approach toward investing is to concern pieces of art as investment instrument or collateral. 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 held in Poland in the years 2007-2010. In our research, employing data concerning 750 objects, we apply hedonic index methodology to estimate returns from the paintings market. Our results justify the opinion that art can be treated as safe asset class, especially in comparison to equity market.

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