Dimension reduction and model averaging for estimation of artists' age-valuation profiles
AbstractIn hedonic regression models of the valuation of works of art, the age or period at which an artist produces a particular work is often found to have highly significant predictive value. Most existing results are based on regressions that pool many painters. Although the uniqueness of artists' career paths makes it interesting to estimate such regressions for individual artists, sample sizes are often inadequate for a model that would also include the large number of other relevant variables. We address this problem of inadequate degrees of freedom in individual artist regressions by using two statistical methods (model averaging and dimension reduction) to incorporate information from a potentially large number of predictor variables, despite relatively small samples. We find that individual age-valuation profiles can differ substantially from general pooled profiles, suggesting that methods that are more responsive to the unique features of individual artists may provide better predictions of art valuations at auction, and may be useful more generally in hedonic valuation problems.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal European Economic Review.
Volume (Year): 56 (2012)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/eer
Art market; Auction prices; Dimension reduction; Model averaging;
Other versions of this item:
- John Galbraith & Douglas James Hodgson, 2009. "Dimension Reduction and Model Averaging for Estimation of Artists’ Age-Valuation Profiles," CIRANO Working Papers 2009s-41, CIRANO.
- Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jushan Bai & Serena Ng, 2000.
"Determining the Number of Factors in Approximate Factor Models,"
Econometric Society World Congress 2000 Contributed Papers
1504, Econometric Society.
- Jushan Bai & Serena Ng, 2002. "Determining the Number of Factors in Approximate Factor Models," Econometrica, Econometric Society, vol. 70(1), pages 191-221, January.
- Jushan Bai & Serena Ng, 2000. "Determining the Number of Factors in Approximate Factor Models," Boston College Working Papers in Economics 440, Boston College Department of Economics.
- Galenson,David W., 2009. "Conceptual Revolutions in Twentieth-Century Art," Cambridge Books, Cambridge University Press, number 9780521112321, December.
- repec:nbr:nberch:11976 is not listed on IDEAS
- David W. Galenson & Bruce A. Weinberg, 2000.
"Age and the Quality of Work: The Case of Modern American Painters,"
Journal of Political Economy,
University of Chicago Press, vol. 108(4), pages 761-777, August.
- David W. Galenson & Bruce A. Weinberg, 1999. "Age and the Quality of Work: The Case of Modern American Painters," NBER Working Papers 7122, National Bureau of Economic Research, Inc.
- Galenson,David W., 2009. "Conceptual Revolutions in Twentieth-Century Art," Cambridge Books, Cambridge University Press, number 9780521129091, December.
- Jun-ichi Itaya & Heinrich Ursprung, 2008. "Price and Death," CESifo Working Paper Series 2213, CESifo Group Munich.
- Victor Ginsburgh & Sheila Weyers, 2006.
"Creativity and Life Cycles of Artists,"
Journal of Cultural Economics,
Springer, vol. 30(2), pages 91-107, September.
- Douglas James Hodgson, 2011. "Age-Price Profiles for Canadian Painters at Auction," CIRANO Working Papers 2011s-15, CIRANO.
- Corinna Czujack, 1997. "Picasso Paintings at Auction, 1963–1994," Journal of Cultural Economics, Springer, vol. 21(3), pages 229-247, September.
- Heinrich W. Ursprung & Christian Wiermann, 2011.
"Reputation, Price, And Death: An Empirical Analysis Of Art Price Formation,"
Western Economic Association International, vol. 49(3), pages 697-715, 07.
- Heinrich Ursprung & Christian Wiermann, 2008. "Reputation, Price, and Death: An Empirical Analysis of Art Price Formation," CESifo Working Paper Series 2237, CESifo Group Munich.
- Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
- Hellmanzik, Christiane, 2010. "Location matters: Estimating cluster premiums for prominent modern artists," European Economic Review, Elsevier, vol. 54(2), pages 199-218, February.
- David Galenson, 2000. "The Careers of Modern Artists," Journal of Cultural Economics, Springer, vol. 24(2), pages 87-112, May.
- Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
- Jushan Bai & Serena Ng, 2006. "Confidence Intervals for Diffusion Index Forecasts and Inference for Factor-Augmented Regressions," Econometrica, Econometric Society, vol. 74(4), pages 1133-1150, 07.
- Douglas Hodgson & Keith Vorkink, 2004. "Asset pricing theory and the valuation of Canadian paintings," Canadian Journal of Economics, Canadian Economics Association, vol. 37(3), pages 629-655, August.
- David W. Galenson, 2009. "Conceptual Revolutions in Twentieth-Century Art," NBER Books, National Bureau of Economic Research, Inc, number gale08-1.
- David W. Galenson & Bruce A. Weinberg, 2001. "Creating Modern Art: The Changing Careers of Painters in France from Impressionism to Cubism," American Economic Review, American Economic Association, vol. 91(4), pages 1063-1071, September.
- John Galbraith & Victoria Zinde-Walsh, 2011. "Partially Dimension-Reduced Regressions with Potentially Infinite-Dimensional Processes," CIRANO Working Papers 2011s-57, CIRANO.
- David Galenson, 2009. "Conceptual Revolutions in Twentieth-Century Art," NBER Working Papers 15073, National Bureau of Economic Research, Inc.
- Bruce E. Hansen, 2007. "Least Squares Model Averaging," Econometrica, Econometric Society, vol. 75(4), pages 1175-1189, 07.
- Charlin, Ventura & Cifuentes, Arturo, 2013. "A new financial metric for the art market," MPRA Paper 50186, University Library of Munich, Germany.
- Enrique Moral-Benito, 2011.
"Model averaging in economics,"
Banco de Espaï¿½a Working Papers
1123, Banco de Espa�a.
- Ventura Charlin & Arturo Cifuentes, 2013. "A new financial metric for the art market," Papers 1309.6929, arXiv.org, revised Dec 2013.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.