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Returns on Indian Art during 2000-2013

Author

Listed:
  • Jenny Rae Hawkins

    (Department of Economics, Oberlin College)

  • Viplav Saini

    (Department of Economics, Oberlin College)

Abstract

The market for modern Indian art is an emerging art market, having come into a proper existence only in the late 1990s. This market saw tremendous growth in its initial years and then a downturn that started around 2007-2008. Using data from auctions conducted by a major Indian art auctioneer, we estimate via hedonic regression a price index for paintings and drawings by Indian artists sold during 2000-2013. We are able to thus estimate a rate of return on Indian art as an investment and also shed light on what drives the price of a painting in the Indian market. In doing so, we document quantitatively the extent of the rise and fall in Indian art prices. We also distinguish empirically two segments in the Indian art market, namely modern painters and contemporary painters, who appear to command different prices at auction. We find a positive and statistically significant relationship between the state of the Indian stock market and art auction prices. Finally, we use our econometric results to construct a ranking of Indian painters in terms of the market prices for their work.

Suggested Citation

  • Jenny Rae Hawkins & Viplav Saini, 2014. "Returns on Indian Art during 2000-2013," ACEI Working Paper Series AWP-03-2014, Association for Cultural Economics International, revised Jun 2014.
    • Handle: RePEc:cue:wpaper:awp-03-2014
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    art; auction; India; price index; hedonic regression;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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