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The construction of hedonic price indices for fauvists’ paintings

Author

Listed:
  • Zhitkov, Konstantin

    (National Research University Higher School of Economics, Moscow.)

  • Ratnikova, Tatiana

    (National Research University Higher School of Economics, Moscow.)

Abstract

This paper deals with the construction of the price indices for the works of art by Henri Matisse and Kees van Dongen. Two methodologies of index construction are compared: hedonic price regression and Heckit model. The latter takes into account the unsold paintings, which resolves the problem of self-selection bias of the sample and allows computation of more precise price indices. The results are the following: the dynamics of indices demonstrates the presence of negative masterpiece effect for paintings by Matisse. During these periods the return on paintings by less famous artist Kees van Dongen is higher. However according to the most of the estimates the risk measured by standard deviation is higher for him too.

Suggested Citation

  • Zhitkov, Konstantin & Ratnikova, Tatiana, 2014. "The construction of hedonic price indices for fauvists’ paintings," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 35(3), pages 59-85.
  • Handle: RePEc:ris:apltrx:0244
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    References listed on IDEAS

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    Cited by:

    1. Petrov, Nikita & Ratnikova, Tatiana, 2017. "The price index for the paintings of Henri Matisse: The sensitivity to the method of construction and connection with stock market and art indices," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 47, pages 49-73.

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    More about this item

    Keywords

    regression; price indices; auction house; Heckman model; works of art.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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