Art Market Returns: Misgivings and Certainties

11 Pages Posted: 7 Jul 2014

See all articles by Ventura Charlin

Ventura Charlin

V.C. Consultants; EVENTUS ANALYTICS; V.C. Consultants

Arturo Cifuentes

CLAPES--UC

Date Written: June 26, 2014

Abstract

Paintings are − among other things − financial assets. The most basic piece of information regarding a financial asset is probably its return, or, more appropriately, the potential return that it can offer. Not surprisingly, many scholars have devoted a fair amount of effort to explore how to compute returns for such assets.

Unfortunately, after more than forty years of efforts, many fundamental issues regarding returns remain unsolved. In this paper we address two issues that somehow have been overlooked by previous research: (i) how the choice of metric influences the computation of estimated returns; and (ii) the importance of taking into consideration the error propagation in the computation of these estimates. We conclude that estimating returns for paintings is far more difficult than previously believed; there is no unique or best solution; and perhaps more relevant, the errors associated with these estimates are quite substantial.

Keywords: Art markets, hedonic pricing, repeat sales, paintings, returns

JEL Classification: C18, D44, G11, G12, Z10

Suggested Citation

Charlin, Ventura and Cifuentes, Arturo, Art Market Returns: Misgivings and Certainties (June 26, 2014). Available at SSRN: https://ssrn.com/abstract=2462955 or http://dx.doi.org/10.2139/ssrn.2462955

Ventura Charlin (Contact Author)

V.C. Consultants ( email )

230 East 73rd Street
7D
New York, NY 10021
United States
9147070723 (Phone)

HOME PAGE: http://vc-consult.com

EVENTUS ANALYTICS ( email )

230 E 73rd Street
New York, NY New York 10021
United States

V.C. Consultants ( email )

United States

Arturo Cifuentes

CLAPES--UC ( email )

Av Libertador General Bernardo O'Higgins 340
Santiago, Región Metropolitana 8331150
Chile

HOME PAGE: http://https://arturocifuentes.com/

Do you want regular updates from SSRN on Twitter?

Paper statistics

Downloads
43
Abstract Views
520
PlumX Metrics