Art as an Investment in Poland – The First 20 Years after The Collapse of the Central Planning Economy

Potocki, Tomasz; Rogozińska, Anna

doi:10.1515/fiqf-2016-0116

Abstract

The article aims at answering the following research question: is the Polish art market mature enough to look at art investment as an important element of portfolio diversification? To provide an answer, the Authors analyzed auctions in Poland from the period 1991-2010, which were published by Art&Business magazine. The number of the analyzed records amounted to 28951. The conclusions may be valuable for researchers specializing in art economics, investors dealing with wealth transfer, financial advisors offering financial products as well as for policy makers responsible for providing institutional infrastructure essential for development of the Polish art market.

References

Ando, A., Modigliani, F. (1963). The ‘Life Cycle’ Hypothesis of Saving: Aggregate Implications and Tests. American Economic Review 53, 55-84.
Search in Google Scholar Back to article
Andrew, M., Ruel, E. (2010). Intergenerational Health Selection in Wealth: A First Look at Parents’ Health Events and Inter Vivos Financial Transfers. Social Science Research, 39, 1126-1136.10.1016/j.ssresearch.2010.06.004
Search in Google Scholar Back to article
Atkinson, A.B. (1971). The Distribution of Wealth and the Individual Life Cycle. Oxford Economic Papers 23, 239-254.10.1093/oxfordjournals.oep.a041192
Search in Google Scholar Back to article
Bagwell, L.S., Bemheim, B.D. (1992). Conspicuous Consumption, Pure Profits, and the Luxury Tax. NBER Working Paper No. 4163.10.3386/w4163
Search in Google Scholar Back to article
Baumol, W.J. (1986). Unnatural Value: Or Art Investment as Floating Crap Game. American Economic Review, 76(2), 10-14.
Search in Google Scholar Back to article
Bołdak, S. (1992). Rynek sztuki w Polsce, Art&Business, 4-5, 33-39.
Search in Google Scholar Back to article
Bogunia-Borowska, M., Śleboda, M. (2003). Globalizacja i konsumpcja. Dwa dylematy współczesności. Kraków: Universitas.
Search in Google Scholar Back to article
Bourdieu, P. (2005). Dystynkcja. Społeczna krytyka władzy sądzenia. Warszawa: Wydawnictwo Naukowe Scholar.
Search in Google Scholar Back to article
Bourdieu, P. (1979). La Distinction: Critique sociale du jugement. Paris: Les Editions de Minuit.
Search in Google Scholar Back to article
Bourdieu, P. (2001). Reguły sztuki. Geneza i struktura pola literackiego. Kraków: Universitas.
Search in Google Scholar Back to article
Čihák, M., Demirgüç-Kunt, A., Feyen, E., Levive, R. (2012). Benchmarking Financial Development Around the World. Policy Research Working Paper 6175, World Bank, Washington, DC.
Search in Google Scholar Back to article
Chanel, O. (1995). Is Art Market Behaviour Predictable? European Economic Review, 39. 519-527.
Search in Google Scholar Back to article
Capgemini, (2013). World Wealth Report. Retrieved from: http://www.capgemini.com/resource-file-access/resource/pdf/wwr_2013_0.pdf.
Search in Google Scholar Back to article
Credit Suisse, (2013). Global Wealth Report. Retrieved from: https://www.credit-suisse.com/pl/en/news-and-expertise/research/credit-suisse-research-institute/publications.html.
Search in Google Scholar Back to article
Epstein, G.A. (2005). Financialization and the World Economy. Edward Elgar: Cheltenham.
Search in Google Scholar Back to article
Frank, R.H. (2005). Positional Externalities Cause Large and Preventable Welfare Losses. The American Economic Review, 95, 137-141.10.1257/000282805774670392
Search in Google Scholar Back to article
Frey, B.S, Einchenberger, R. (1995). On the Rate of Return in the Art Market: Survey and Evaluation. European Economic Review, 39, 528-537.10.1016/0014-2921(94)00059-9
Search in Google Scholar Back to article
Gerlis, M. (2014). Art as an Investment? Surrey: Lund Humphries.
Search in Google Scholar Back to article
Gokhale, J., Kotlikoff, L.J., Sefton, J., Weale, M. (2001). Simulating the Transmission Wealth Inequality via Bequests. Journal of Public Economics, 79, 93-128.10.1016/S0047-2727(00)00097-9
Search in Google Scholar Back to article
Goetzmann, W.N. (1993). Accounting for Taste: Art and Financial Markets over Three Centuries. American Economic Review, 83. 1370-1376.
Search in Google Scholar Back to article
Goetzmann, W.N., Renneboog, L., Spaenjers, C. (2011). Art and Money. American Economic Review: Papers & Proceedings, 101:3, 222-226.10.1257/aer.101.3.222
Search in Google Scholar Back to article
Hsieh, S.H., Lee, J.P., Tzeng, L.Y. (2010). Art as an Investment: Empirical Study of Asian Contemporary and Chinese 20th Century Modern Art. Retrieved from: www.fin.ntu.edu.tw/~conference/conference2010/.../11/11-1(A40).pdf.
Search in Google Scholar Back to article
Higgs, H., Worthington, A. (2005). Financial Returns and Price Determinants in the Australian Art Market, 1973-2003. The Economic Record, 81(253), 113-123.10.1111/j.1475-4932.2005.00237.x
Search in Google Scholar Back to article
Horowitz, N. (2011). Art of the Deal. Contemporary Art in Global Financial Market. Princeton and Oxford: Princeton University Press.
Search in Google Scholar Back to article
Kraeussl, R., Logher, R. (2008). Emerging Art Markets. Retrieved from: https://kunstmarktanalysen.com/uploads/.../pdf/Emerging%20Kräussl.pdf.
Search in Google Scholar Back to article
Kraeussl, R., Lehnert, T., Martelin, N. (2014). Is There a Bubble in the Art Market?.CFS Working Paper Series 493 Retrieved from: https://www.ifk-cfs.de/fileadmin/downloads/publications/wp/2014/CFS_WP_493.pdf.
Search in Google Scholar Back to article
McAndrew, C. (2009). Globalisation and the Art Market. Helvoirt: The European Fine Art Foundation.
Search in Google Scholar Back to article
Mandel, B.R. (2009). Art as an Investment and Conspicuous Consumption Good. American Economic Review, 99, 1653-1663.10.1257/aer.99.4.1653
Search in Google Scholar Back to article
Miliszkiewicz, J. (2007). Przygoda bycia Polakiem. Warszawa: Iskry.
Search in Google Scholar Back to article
Mei, J., Moses, M. (2002). Art as an Investment and the Underperformance of Masterpieces. American Economic Review, 92, 1656-1668.10.1257/000282802762024719
Search in Google Scholar Back to article
Pesando, J.E., Shum, P.M. (2008). The Auction Market for Modern Prints: Confirmations, Contradictions, and New Puzzles. Economic Inquiry, 46, 149-159.10.1111/j.1465-7295.2007.00070.x
Search in Google Scholar Back to article
Palley, T. (2013). Financialization: The Economics of Finance Capital Domination. Palgrave Macmillan: Basingstoke.
Search in Google Scholar Back to article
Renneboog, L.,Van Houtte, T. (2002). The Monetary Appreciation of Paintings: From Realism to Magritte. Cambridge Journal of Economics, 26, 331-57.10.1093/cje/26.3.331
Search in Google Scholar Back to article
Renneborg, L., Spaenjers, C. (2011). The Iconic Boom in Modern Russian Art. Journal of Alternative Investment 2011 Winter, 67-80.
Search in Google Scholar Back to article
Shiller, R.J. (2005). Irrational Exuberance (second edition). New York: Crown Business.
Search in Google Scholar Back to article
Skates, (2013). Poland’s Art market: The Rising Star of Eastern Europe. New York: SkatePress.
Search in Google Scholar Back to article
Spilerman, S., Wolff, F-S. (2012). Parental Wealth and Resource Transfers: How they Matter in France for Home Ownership and Living Standards. Social Science Research, 41, 207-223.10.1016/j.ssresearch.2011.08.002
Search in Google Scholar Back to article
Williams, R., Pressier, V. (2010). Philanthropy, Heirs & Values: How Successful Families Are Using Philanthropy To Prepare Their Heirs For Post-transition Responsibilities. Bandon: Robert Reed Publishers.
Search in Google Scholar Back to article
Witkowska, D. (2014). An Application of Hedonic Regression to Evaluate Prices of Polish Paintings. International Advances in Economic Research 20, 281-293.10.1007/s11294-014-9468-x
Search in Google Scholar Back to article
World Wealth Report, (2011). Cap Gemini i Merrill Lynch. Retrieved from: http://www.capgemini.com/resources/world-wealth-report-2011, access date 01.05.2014.
Search in Google Scholar Back to article
World Bank, (2012). Global Financial Development Report 2013: Rethinking the Role of the State in Finance.10.1596/9780821399859
Search in Google Scholar Back to article
Washington, DC: World Bank. Retrieved from: http://www.capgemini.com/resources/world-wealth-report-2011, access date 01.05.2014.
Search in Google Scholar Back to article
Worthington, A.C., Higgs, H. (2003). Art as an Investment: Short and Long-term Co-movements in Major Painting Markets. Empirical Economics, 28, 649-668.10.1007/s00181-003-0152-x
Search in Google Scholar Back to article
Znaczenie gospodarcze sektora kultury, (2010). Instytut Badań Strukturalnych. Retrieved from: http://www.obserwatoriumkultury.pl/files/2011-01-04/znaczenie_gospodarcze_sektora_kultury.pdf.
Search in Google Scholar Back to article
Velthuis, O. (2012). The Contemporary Art. Market between Stasis and Flux. In: M. Lind, O. Velthuis (Ed.), Contemporary Art and Its Commercial Markets. A Report on Current Conditions and Future Scenarios (p. 27). Berlin: Sternberg Press.
Search in Google Scholar Back to article

Art as an Investment in Poland – The First 20 Years after The Collapse of the Central Planning Economy

Abstract

Paradigm

My account