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The price index for the paintings of Henri Matisse: The sensitivity to the method of construction and connection with stock market and art indices

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  • Petrov, Nikita

    (National Research University Higher School of Economics, Moscow, Russian Federation)

  • Ratnikova, Tatiana

    (National Research University Higher School of Economics, Moscow, Russian Federation)

Abstract

The aim of this paper is to construct price indexes for the sample of Henri Matisse works. There are examination and comparison of two approaches: hedonic regression and repeat sales. Modifing hedonic regressions within a multilevel (hierarchical) approach allows to consider the possible sales correlation, made in the same time period. Constructed indices generally find a similar pattern, however, since 1990, the repeat sales index shows systematically lower values. The yield of the hedonic index and the index Mei–Moses are almost the same in the period of the 1990s. In the studied period the repeat sales index return almost identical to the Artprice Global Index yield. This circumstance sursuggests that investing in Henri Matisse paintings were as profitable, as investments in the art market as a whole. Annual return of the art index is more volatile than the stock index S&P500, but the dynamics of the yields are well correlated.

Suggested Citation

  • Petrov, Nikita & Ratnikova, Tatiana, 2017. "The price index for the paintings of Henri Matisse: The sensitivity to the method of construction and connection with stock market and art indices," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 47, pages 49-73.
    • Handle: RePEc:ris:apltrx:0324
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    References listed on IDEAS

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    Cited by:

    1. Zyamalov, V. & Turuntseva, M., 2024. "The influence of goods' quality on their price indices," Journal of the New Economic Association, New Economic Association, vol. 62(1), pages 196-209.
    2. Kosyakina, Anastasia, 2023. "A bubble in the housing market? Analysis based on the repeat-sales method for the secondary market in Moscow and Saint Petersburg," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 70, pages 72-88.
    3. Ekaterina Bobrovskaya & Andrey Polbin & Nikita Fokin, 2024. "Hedonic Price Indices for Moscow Short-Term Rental Housing," Russian Journal of Money and Finance, Bank of Russia, vol. 83(1), pages 77-103, March.

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    More about this item

    Keywords

    art market; hedonic price index; art index; multilevel regression; random time effects; repeat sales index.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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