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The impact of the Droit de Suite in the UK: an empirical analysis

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  • Chanont Banternghansa
  • Kathryn Graddy

Abstract

The Droit de Suite, known in the UK as Artists? Resale Rights, provides an artist with the inalienable right to receive a royalty based on the resale price of an original work of art. This paper provides an empirical analysis of actual changes in the UK auction market for art that is subject to the Droit de Suite (DDS), relative to changes for art not subject to the DDS, and also relative to changes in the auction markets for art in countries where there has been no change in law. We do a difference-in-difference analysis, differencing price growth and sales growth across market segments and across countries over the period 1996 to 2007. Our results suggest that the introduction of the DDS has not had a negative impact on the UK art auction market.
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Suggested Citation

  • Chanont Banternghansa & Kathryn Graddy, 2011. "The impact of the Droit de Suite in the UK: an empirical analysis," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 35(2), pages 81-100, May.
    • Handle: RePEc:kap:jculte:v:35:y:2011:i:2:p:81-100
    DOI: 10.1007/s10824-010-9134-y
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    References listed on IDEAS

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    14. Kräussl, Roman & Elsland, Niels van, 2008. "Constructing the true art market index: A novel 2-step hedonic approach and its application to the German art market," CFS Working Paper Series 2008/11, Center for Financial Studies (CFS).
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    17. Chanont Banternghansa & Kathryn Graddy, 2011. "The impact of the Droit de Suite in the UK: an empirical analysis," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 35(2), pages 81-100, May.
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    Cited by:

    1. Alexander Cuntz & Matthias Sahli, 2024. "Intermediary liability and trade in follow-on innovation," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 48(1), pages 1-42, March.
    2. Whitaker, Amy & Kräussl, Roman, 2023. "Art collectors as venture capitalists," CFS Working Paper Series 696, Center for Financial Studies (CFS).
    3. Bruce Seaman, 2017. "¿Qué está en juego al optar entre distintas formas de apoyo para el sector cultural?," Estudios Públicos, Centro de Estudios Públicos, vol. 0(146), pages 121-162.
    4. Victor Ginsburgh, 2011. "Resale Rights," Chapters, in: Ruth Towse (ed.), A Handbook of Cultural Economics, Second Edition, chapter 55, Edward Elgar Publishing.
    5. Elisabetta Lazzaro & Nathalie Moureau, 2013. "Auctioneers vs. commissaires-priseurs: The carnival mirror of profession regulation in the international art market," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 10(2), pages 159-176, August.
    6. Amy Whitaker & Roman Kräussl, 2020. "Fractional Equity, Blockchain, and the Future of Creative Work," Management Science, INFORMS, vol. 66(10), pages 4594-4611, October.
    7. Chanont Banternghansa & Kathryn Graddy, 2011. "The impact of the Droit de Suite in the UK: an empirical analysis," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 35(2), pages 81-100, May.
    8. Michael Rushton, 2011. "Artists’ Rights," Chapters, in: Ruth Towse (ed.), A Handbook of Cultural Economics, Second Edition, chapter 8, Edward Elgar Publishing.
    9. Kim Oosterlinck & Anne-Sophie Radermecker, 2021. "Regulation or Reputation? Evidence from the Art Market," Working Papers CEB 21-006, ULB -- Universite Libre de Bruxelles.
    10. Richard Watt, 2014. "Copyright in visual art markets: some economic theory concerning resale royalties and other options," Chapters, in: Richard Watt (ed.), Handbook on the Economics of Copyright, chapter 18, pages 328-342, Edward Elgar Publishing.
    11. Anne LAYNE-FARRAR & Gerard LLOBET & Jorge PADILLA, 2014. "Patent Licensing in Vertically Disaggregated Industries: The Royalty Allocation Neutrality Principle," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(95), pages 61-84, 3rd quart.
    12. Etro, Federico & Stepanova, Elena, 2021. "Art return rates from old master paintings to contemporary art," Journal of Economic Behavior & Organization, Elsevier, vol. 181(C), pages 94-116.
    13. Francesco Angelini & Massimiliano Castellani & Pierpaolo Pattitoni, 2023. "You can’t export that! Export ban for modern and contemporary Italian art," European Journal of Law and Economics, Springer, vol. 56(3), pages 533-557, December.

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    More about this item

    Keywords

    Droit de suite; Art; Art auctions; Price; Tax;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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