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Entry of painters in the Amsterdam market of the Golden Age

Author

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  • Federico Etro

    () (University of Venice Ca’ Foscari)

  • Elena Stepanova

    () (Sant’Anna School of Advanced Studies)

Abstract

We analyze the evolution of the entry of painters and price of paintings in the XVII century Amsterdam art market. In line with evolutionary theory, demand-driven entry in the market was first associated with product innovations and a rapid increase in the number of painters. After reaching a peak, the number of painters started to decrease in parallel with a price decline and the introduction of process innovations. To test for the role of profitability in the art market as a determinant of endogenous entry of painters, we build a price index for the representative painting inventoried in Dutch houses. This is based on hedonic regressions controlling for characteristics of the paintings (size, genre, placement in the house), the owners (job, religion, value of the collection, size of the house) and the painters. After a peak at the beginning of the century, the real price of paintings decreased until the end of the century. We provide anecdotal evidence for which high initial prices attracted entry of innovators, and econometric evidence on the causal relation between price movements and entry.

Suggested Citation

  • Federico Etro & Elena Stepanova, 2016. "Entry of painters in the Amsterdam market of the Golden Age," Journal of Evolutionary Economics, Springer, vol. 26(2), pages 317-348, May.
  • Handle: RePEc:spr:joevec:v:26:y:2016:i:2:d:10.1007_s00191-016-0456-6
    DOI: 10.1007/s00191-016-0456-6
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    References listed on IDEAS

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    Cited by:

    1. Etro, Federico & Marchesi, Silvia & Stepanova, Elena, 2020. "Liberalizing art. Evidence on the Impressionists at the end of the Paris Salon," European Journal of Political Economy, Elsevier, vol. 62(C).
    2. Elena Stepanova, 2019. "The impact of color palettes on the prices of paintings," Empirical Economics, Springer, vol. 56(2), pages 755-773, February.
    3. Federico Etro & Elena Stepanova, 2017. "Art Auctions and Art Investment in the Golden Age of British Painting," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(2), pages 191-225, May.
    4. Federico Etro & Elena Stepanova, 2018. "Power-Laws in Art. From Renaissance to Contemporary Art," Working Papers - Economics wp2018_20.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    5. Federico Etro & Elena Stepanova, 2017. "Art collections and taste in the Spanish Siglo de Oro," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 41(3), pages 309-335, August.
    6. Etro, Federico & Stepanova, Elena, 2018. "Power-laws in art," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 506(C), pages 217-220.
    7. Etro, Federico & Stepanova, Elena, 2021. "Art return rates from old master paintings to contemporary art," Journal of Economic Behavior & Organization, Elsevier, vol. 181(C), pages 94-116.
    8. Etro, Federico, 2018. "The Economics of Renaissance Art," The Journal of Economic History, Cambridge University Press, vol. 78(2), pages 500-538, June.

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    More about this item

    Keywords

    Art market; Endogenous entry; Dutch golden age; Hedonic prices; VAR analysis;
    All these keywords.

    JEL classification:

    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
    • N0 - Economic History - - General
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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