An analysis of pricing and returns in the market for French Canadian paintings

Abstract

The valuation of French Canadian paintings is analysed empirically. Using a sample of auction prices for major French Canadian painters for the period 1968 to 2005, we run hedonic regressions to determine the influence of various factors, including painter identity, on auction prices, as well as to construct a market price index. This is then used in a second stage analysis of the properties of these art works viewed as investment assets. We consider the extent to which standard asset pricing theory, as represented by the capital asset pricing model, can account for price movements in the market for French Canadian paintings.

Acknowledgements

I would like to thank the SSHRC and FQRSC for financial support. For their comments, thanks to Lynda Khalaf, André Lemelin, and participants at the 2007 meetings of the CEA and SCSE.