IDEAS home Printed from https://ideas.repec.org/a/eee/eecrev/v54y2010i2p199-218.html
   My bibliography  Save this article

Location matters: Estimating cluster premiums for prominent modern artists

Author

Listed:
  • Hellmanzik, Christiane

Abstract

This paper shows that 'location matters' in terms of premiums on creative clusters and peak ages. The analysis is based on the 214 most prominent modern visual artists born 1850-1945 and the art clusters of Paris and New York. Auction records of the past 20 years are used to estimate the value of artworks over an artist's career. The overall cluster premium for paintings produced in Paris and New York is found to be 11% and 43%, respectively; paintings made in Paris during the First World War have a premium of 14% while those produced between 1946 and 1975 have a premium of 27%. New York offers premiums for paintings produced there for all periods after the First World War, peaking at 74% between 1946 and 1975. When decomposing this premium, we find that quality rather than quantity of artists in the location is driving the results. It is argued that artists working in a cluster location reach a peak in the age-price profile of their work significantly earlier than artists working elsewhere.

Suggested Citation

  • Hellmanzik, Christiane, 2010. "Location matters: Estimating cluster premiums for prominent modern artists," European Economic Review, Elsevier, vol. 54(2), pages 199-218, February.
    • Handle: RePEc:eee:eecrev:v:54:y:2010:i:2:p:199-218
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0014-2921(09)00070-1
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kim, E. Han & Morse, Adair & Zingales, Luigi, 2009. "Are elite universities losing their competitive edge?," Journal of Financial Economics, Elsevier, vol. 93(3), pages 353-381, September.
    2. Roland Vaubel, 2005. "The Role of Competition in the Rise of Baroque and Renaissance Music," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 29(4), pages 277-297, November.
    3. Orley Ashenfelter & Kathryn Graddy, 2011. "Art Auctions," Chapters, in: Ruth Towse (ed.), A Handbook of Cultural Economics, Second Edition, chapter 2, Edward Elgar Publishing.
    4. Fabian Waldinger, 2012. "Peer Effects in Science: Evidence from the Dismissal of Scientists in Nazi Germany," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(2), pages 838-861.
    5. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 577-598.
    6. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    7. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    8. Pierre Azoulay & Joshua S. Graff Zivin & Jialan Wang, 2010. "Superstar Extinction," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(2), pages 549-589.
    9. 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.
    10. Douglas James Hodgson, 2011. "Age-Price Profiles for Canadian Painters at Auction," CIRANO Working Papers 2011s-15, CIRANO.
    11. Adair Morse, 2006. "Are elite universities losing their competitive edge?," Proceedings, Federal Reserve Bank of Cleveland.
    12. Moretti, Enrico, 2004. "Human capital externalities in cities," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 51, pages 2243-2291, Elsevier.
    13. Fabian Waldinger, 2009. "Peer effects in science: evidence from Nazi Germany," CentrePiece - The magazine for economic performance 278, Centre for Economic Performance, LSE.
    14. Victor Ginsburgh & Sheila Weyers, 2006. "Creativity and Life Cycles of Artists," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 30(2), pages 91-107, September.
    15. David W. Galenson & Bruce A. Weinberg, 2001. "Creating Modern Art: The Changing Careers of Painters in France from Impressionism to Cubism," American Economic Review, American Economic Association, vol. 91(4), pages 1063-1071, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hellmanzik, Christiane, 2013. "Democracy and economic outcomes: Evidence from the superstars of modern art," European Journal of Political Economy, Elsevier, vol. 30(C), pages 58-69.
    2. Christiane Hellmanzik, Department of Economics and IIIS, Trinity College Dublin, 2009. "Artistic Clusters and Modern Artists’ Mobility - An Empirical Study," The Institute for International Integration Studies Discussion Paper Series iiisdp296, IIIS.
    3. Hellmanzik, Christiane, 2016. "Historic art exhibitions and modern - day auction results," Research in Economics, Elsevier, vol. 70(3), pages 421-430.
    4. Christiane Hellmanzik, 2013. "Does travel inspire? Evidence from the superstars of modern art," Empirical Economics, Springer, vol. 45(1), pages 281-303, August.
    5. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    6. Matthias Krapf, 2015. "Age and complementarity in scientific collaboration," Empirical Economics, Springer, vol. 49(2), pages 751-781, September.
    7. Christiane Hellmanzik, 2009. "Artistic styles: revisiting the analysis of modern artists’ careers," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 33(3), pages 201-232, August.
    8. Wei Cheng & Bruce A. Weinberg, 2021. "Marginalized and Overlooked? Minoritized Groups and the Adoption of New Scientific Ideas," NBER Working Papers 29179, National Bureau of Economic Research, Inc.
    9. William C. Strange, 2009. "Viewpoint: Agglomeration research in the age of disaggregation," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 1-27, February.
    10. Douglas J. Hodgson & Christiane Hellmanzik, 2019. "Relationships between artistic movements and careers of modern artists: evidence from hedonic regressions with auction data," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 43(2), pages 309-337, June.
    11. Kathryn Graddy & Carl Lieberman, 2018. "Death, Bereavement, and Creativity," Management Science, INFORMS, vol. 64(10), pages 4505-4514, October.
    12. Thomas Bolli & Jörg Schläpfer, 2015. "Job mobility, peer effects, and research productivity in economics," Scientometrics, Springer;Akadémiai Kiadó, vol. 104(3), pages 629-650, September.
    13. Andersson, Roland & Quigley, John M. & Wilhelmsson, Mats, 2009. "Urbanization, productivity, and innovation: Evidence from investment in higher education," Journal of Urban Economics, Elsevier, vol. 66(1), pages 2-15, July.
    14. Fabian Waldinger, 2012. "Peer Effects in Science: Evidence from the Dismissal of Scientists in Nazi Germany," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(2), pages 838-861.
    15. Hartwig, Jochen, 2015. "Structural change, aggregate demand and employment dynamics in the OECD, 1970–2010," Structural Change and Economic Dynamics, Elsevier, vol. 34(C), pages 36-45.
    16. John McHale & Jason Harold & Jen-Chung Mei & Akhil Sasidharan & Anil Yadav, 2023. "Stars as catalysts: an event-study analysis of the impact of star-scientist recruitment on local research performance in a small open economy," Journal of Economic Geography, Oxford University Press, vol. 23(2), pages 343-369.
    17. Galbraith, John W. & Hodgson, Douglas J., 2012. "Dimension reduction and model averaging for estimation of artists' age-valuation profiles," European Economic Review, Elsevier, vol. 56(3), pages 422-435.
    18. John Galbraith & Douglas Hodgson, 2015. "Innovation, experience and artists’ age-valuation profiles: evidence from eighteenth-century rococo and neoclassical painters," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 39(3), pages 259-275, August.
    19. Ham, John C. & Weinberg, Bruce A., 2017. "Novelty, Knowledge Spillovers and Innovation: Evidence from Nobel Laureates," GLO Discussion Paper Series 30, Global Labor Organization (GLO).
    20. Alberto Franco Pozzolo, 2004. "Research and Development, Regional Spillovers and the Location of Economic Activities," Manchester School, University of Manchester, vol. 72(4), pages 463-482, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eecrev:v:54:y:2010:i:2:p:199-218. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eer .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.