However, over the last ten years the share of the postwar art has grown up from 15% to 26% due to the growth of popularity and prices for the art works in this sector. The largest art sector is the modern art: it takes more than a half of the market in terms of revenue generated by public sales. From the geographic point of view China has displaced the USA from the leader’s position despite the fact that the USA along with the UK have been predominating on the global fine art market for more than 50 years. Such indicators as the number of million dollars lots and bought-in rate also indicate the positive trends on the market: in 2013 the number of million dollars sales achieved 1519 lots compared to 487 lots in 2005 the bought-in rate keeps the level of 30–35%. The world auction’s revenue has increased more than three times from $4.15 billion in 2005 to $15.2 billion in 2014. First of all, it is necessary to highlight the increase of sales on the fine art market. Over the last ten years not only the structure of the art market participants has been changed, we can also observe the noticeable changes in taste preferences which cause new tendencies on the market. Thus, there is a certain class of the art market investors and funds shapes. Nowadays investing in the fine art is an alternative to the classical instruments of investment, especially, when the stock market falls (like in 2008). Traditionally, the fine art market is supported by the interest from collectors, but the last 10 years’ buyers pay more attention to the profit to be obtained from investing in the art. Based on the estimates obtained we construct monthly art price index and compare it with S&P500 benchmark. We use the Heckman model in order to estimate the art asset return and find out the most influential factors of art price dynamics. Extensive data was collected to obtain a complete pattern of the market analyzing it within different segments. We make an attempt to investigate attractiveness of the fine art market for investors. However, due to the diversity of the fine art market’s goods and the absence of the systematic information about the sales, researchers do not come to the same opinion about the merits of the art assets conducting studies on single segments of the market. The fine art market is very heterogeneous which is featured by uniqueness of the goods, specific costs and risks, various peculiarities of functioning, different effects and, hence, needs special treatment. 1595–1635.In conditions of the stock market instability the art assets could be considered as an attractive investment. (eds.) Handbook of Regional and Urban Economics Volume 3: Applied Urban Economics, pp. Sheppard, S.: Hedonic analysis of housing markets, Chapter 41. Rosen, S.: Hedonic prices and implicit markets: product differentiation in pure competition. Pope, J.C.: Do seller disclosures affect property values? Buyer Information and the hedonic model. Pope, J.C.: Buyer information and the hedonic: the impact of a seller disclosure on the implicit price for airport noise. Parmeter, C.F., Henderson, D.J., Kumbhakar, S.C.: Nonparametric estimation of hedonic price function. Paglia, F.: Stima e rating immobiliare, p. (eds.) Housing Economics and Public Policy: Essay in Honour of Duncan Maclennan. Malpezzi, S.: Hedonic pricing models: a selective and applied review. Leung, C.K.Y., Leong, Y.C.F., Wong, S.K.: Housing price dispersion: an empirical investigation. Leung, C.K.Y., Zhang, J.: Fire sales in housing market: Is the house-search process similar to a theme park visit? Int. Lentz, G.H., Wang, K.: Residential appraisal and the lending process: a survey of issues. Virginia Tech Working Paper, 2008-04, January (2008) Kumbhakar, S.C., Parmeter, C.F.: Estimation of Hedonic Price Functions with Incomplete Information. Haupt, H., Schnurbus, J., Tschernig, R.: On nonparametric estimation of a hedonic price function. In: Nonparametric and Semiparametric Models. Härdle W., Werwatz A., Müller M., Sperlich S.: Single Index models. Harding, J.P., Rosenthal, S.S., Sirmans, C.F.: Estimating bargaining power in the market for existing homes. Harding, J.P., Knight, J.R., Sirmans, C.F.: Estimating bargaining effects in hedonic models: evidence from the housing market. American Agricultural Economics Association, 21255 2006 Annual Meeting, July 23–26, Long Beach, CA (2006)Įpple, D.R.: Hedonic prices and implicit markets: estimating demand and supply functions for differentiated products. 11(6), 633–648 (1996)Ĭotteleer G., Gardebroek C.: Bargaining and Market Power in a GIS-Based Hedonic Pricing Model of the Agricultural Land Market. Anglin, P.M., Gençay, R.: Semiparametric estimation of a hedonic price function.
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