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Asset pricing theory and the valuation of Canadian paintings
Author(s) -
Hodgson Douglas J.,
Vorkink Keith P.
Publication year - 2004
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.0008-4085.2003.00241.x
Subject(s) - capital asset pricing model , valuation (finance) , economics , financial economics , capital asset , consumption based capital asset pricing model , painting , arbitrage pricing theory , index (typography) , asset (computer security) , econometrics , microeconomics , finance , art , computer security , world wide web , computer science , visual arts
. 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.