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Asset pricing theory and the valuation of Canadian paintings

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  • Douglas J. Hodgson
  • Keith P. Vorkink

Abstract

. The valuation of Canadian paintings is analysed empirically. Using a sample of auction prices for major Canadian painters for the period 1968–2001, we run hedonic regressions to analyse the influence of various factors, including painter identity, on auction prices, as well as to construct a market price index. This index is used in a second‐stage analysis in which we analyse the properties of Canadian art viewed as an investment asset. We apply standard asset pricing theory, as incorporated in the capital asset pricing model (CAPM), to the analysis of price movements in the market for Canadian paintings. Théorie du prix des actifs et évaluation de peintures canadiennes. Les auteurs font une étude empirique de l’évaluation de peintures canadiennes. A partir d’un échantillon de prix d’encan pour la période 1968–2001, ils estiment une régression hédonique qui leur permet d’analyser l’effet sur le prix de quelques variables comme l’identité du peintre, et de construire un indice de prix dans le temps. Cet indice est utilisé pour étudier les rendements sur les peintures considérées comme des investissements. On utilise le modèle d’évaluation des actifs financiers (MÉDAF) pour analyser ces mouvements de prix.

Suggested Citation

  • Douglas J. Hodgson & Keith P. Vorkink, 2004. "Asset pricing theory and the valuation of Canadian paintings," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(3), pages 629-655, August.
    • Handle: RePEc:wly:canjec:v:37:y:2004:i:3:p:629-655
    DOI: 10.1111/j.0008-4085.2003.00241.x
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