A Rembrandt is a Rembrandt

Teresa Corbella Domènech and Martí Oliva

Working Papers from Universitat Rovira i Virgili, Department of Economics

Abstract: As paintings are assets, we propose to model a painting's price dynamics as a diffusion process, i.e., as the financial literature models share prices, but correcting by size. We show that the influence of size on the artwork price diminishes as the paintings gets older because 1) prices incorporate progressively more noise and 2) for high quality artists, the relative importance of size on price decreases as the artist consolidates and authorship gains importance as explanatory variable. Our theoretical results are consistent with data from a sample of 19th- and 20th-century Catalan painters of similar quality. These findings suggest that an artist's quality and antiquity should be taken into account in order to obtain more efficient estimates of parameters in hedonic art market models.

Keywords: Mercat de l'art; Pintura; Preus; Models matemàtics (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:urv:wpaper:2072/1752

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