The Economics of Latin American Art: Creativity Patterns and Rates of Return
In this paper I use a large data set to analyze two aspects of the Latin American arts: (1) the nature of artistic creative process, and (2) Latin American art as an investment. I use data on auctions to understand the relation between artists' age and the value of their work. The analysis on creativity suggests that Latin American artists have followed very different patterns from that followed by U.S. artists. There is strong evidence suggesting that American artists born after 1920 did their best work at an earlier age than their older colleagues; exactly the opposite is true for the case of Latin America. Indeed, the results reported in this paper suggest that Latin American artists born after 1920 did their best work at a significantly older age than their colleagues from earlier cohorts. The analysis of art as an investment is based on the estimation of hedonic price indexes, and indicates that Latin American art has had a relatively high rate of return indeed much higher than that of other type of paintings. The results also indicate that returns on Latin American art have a very low degree of correlation that is, a very low beta relative to an international portfolio comprised of equities. This means that adding Latin American art will lower the overall risk of an international portfolio.
|Date of creation:||Feb 2004|
|Date of revision:|
|Publication status:||published as Edwards, Sebastian. “The Economics of Latin American Art: Creativity Patterns and Rates of Return.” Economia 4, 2 (Spring 2004): 1-35.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
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.:
- Zvi Griliches, 1998.
"Productivity, R&D, and the Data Constraint,"
in: R&D and Productivity: The Econometric Evidence, pages 347-374
National Bureau of Economic Research, Inc.
- Pesando, James E, 1993. "Art as an Investment: The Market for Modern Prints," American Economic Review, American Economic Association, vol. 83(5), pages 1075-89, December.
- Chanel, O. & Gérard-Varet, L.-A. & Ginsburgh, V., .
"The relevance of hedonic price indices,"
CORE Discussion Papers RP
1222, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- David W. Galenson, 1999. "The Lives of the Painters of Modern Life: The Careers of Artists in France from Impressionism to Cubism," NBER Working Papers 6888, National Bureau of Economic Research, Inc.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- 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.
- 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.
- Victor Ginsburgh & Pierre-Michel Menger, 1996.
"Economics of the arts: selected essays,"
ULB Institutional Repository
2013/1655, ULB -- Universite Libre de Bruxelles.
- David W. Galenson, 1997. "The Careers of Modern Artists: Evidence from Auctions of Contemporary Paintings," NBER Working Papers 6331, National Bureau of Economic Research, Inc.
- David Galenson, 2000. "The Careers of Modern Artists," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 24(2), pages 87-112, May.
- Jianping Mei & Michael Moses, 2002. "Art as an Investment and the Underperformance of Masterpieces," American Economic Review, American Economic Association, vol. 92(5), pages 1656-1668, December.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:10302. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.