Financial returns and price determinants in the Australian art market 1973-2003

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Title Financial returns and price determinants in the Australian art market 1973-2003
Author Higgs, Helen; Worthington, Andrew Charles
Journal Name The Economic Record
Editor Harry Bloch
Year Published 2005
Place of publication Melbourne
Publisher Blackwell Publishing
Abstract In this study, 37,605 paintings by sixty well-known Australian artists sold at auction over the period 1973-2003 are used to construct a hedonic price index. The attributes included in the hedonic regression model include the name and living status of the artist, the size and medium of the painting, and the auction house and year in which the painting was sold. The resulting index indicates that returns on Australian fine-art averaged seven percent in nominal terms over the period with a standard deviation of sixteen percent. As a result, the risk-adjusted return of 0.42 in the Australian art market is only slightly less than the risk-adjusted return of 0.44 in the Australian stock market over the same period. The hedonic regression model also captures the willingness to pay for perceived attributes in the artwork, and this shows that works by McCubbin, Gascoigne, Thomas and Preston and other artists deceased at the time of auction, works executed in oils or acrylic, and those auctioned by Sotheby’s or Christie’s are associated with higher prices.
Peer Reviewed Yes
Published Yes
Publisher URI
Copyright Statement Copyright 2005 Blackwell Publishing. This is the author-manuscript version of the paper. Reproduced in accordance with the copyright policy of the publisher.
Volume 81
Issue Number 253
Edition 2005
Page from 113
Page to 123
ISSN 0013-0249
Date Accessioned 2006-07-03
Language en_US
Research Centre Griffith Asia Institute
Faculty Griffith Business School
Subject PRE2009-Econometric and Statistical Methods
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1x

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