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Business & Economics

EVALUATION OF THE INDIVIDUAL HEDONIC ART PRICE INDEXES FOR THE POLISH PAINTERS REPRESENTING THE AUCTION MARKET IN POLAND
Dorota Witkowska

ABSTRACT. Art market in Poland is developing and the investment in art attracts the attention of Polish investors. In order to evaluate the performance of the certain type of assets, the expected returns, which can be received, are to be calculated. In case of the heterogenic goods, such as art, the hedonic price index approach is often applied. The art price indexes are calculated for the individual artists, the whole market, and its segments. The aim of the paper is to evaluate the individual hedonic price indexes for 17 Polish painters, representing the auction market in Poland, and to estimate the returns from the paintings market, described by the "basket" of the selected artists. This research applies the hedonic regression methodology and the aggregated hedonic index, using data of 1710 artworks, which were traded on the auctions that took place in Poland in the years 2007-2013 .

KEYWORDS: alternative financial investment, art market, Polish paintings, hedonic price index.

JEL classification: C43, C51, G10, Z11.