Arts Investment Forum
Dynamic Price Dependence of Canadian and International Art Markets: An Empirical Analysis
Topic(s): public and private funding policies / research, social investment
Keywords: Art markets - international - paintings - collectors- international art market - Canada - modern art - cultural economics
This paper looks at Canadian and international art markets. Although the market for Canadian paintings is now of substantial magnitude, with several works having recently sold for well over a million dollars, it remains true that with very few exceptions, the works of Canadian painters are bought and sold only in Canada and held only by Canadian collectors. This market can thus be viewed as almost exclusively local, and it is therefore not clear that there should be any linkage between price movements for Canadian art and those for the mainstream international market in old master, impressionist, and modern art. This paper investigates the presence and nature of such time series dependence econometrically, both in terms of long term trends as reflected in the co-integrating relationship between Canadian and the international market, and in terms of short-run co-movements as represented in correlations. The possibility that the local market "follows" the international one is also considered through an analysis of Granger-Causality.
Author / Published by: Douglas J. Hodgson, UQAM, Université du Québec à Montréal, Department of economics
Year of publication: 2010
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