The Impact of the Droit De Suite in the UK: An Empirical Analysis

33 Pages Posted: 18 Feb 2009

See all articles by Chanont Banternghansa

Chanont Banternghansa

Federal Reserve Bank of St. Louis

Kathryn Graddy

Brandeis University - Department of Economics

Date Written: January 2009

Abstract

The Droit de Suite, known in the UK as Artists' Resale Rights, provides an artist with the inalienable right to receive a royalty based on the resale price of an original work of art. This paper provides an empirical analysis of actual changes in the UK auction market for art that is subject to the Droit de Suite (DDS), relative to changes for art not subject to the DDS, and also relative to changes in the auction markets for art in countries where there has been no change in law. We do a difference-in-difference analysis, differencing price growth and sales growth across market segments and across countries over the period 1996 to 2007. Our results suggest that the introduction of the DDS has not had a negative impact on the UK art auction market.

Keywords: art, artists resale rights, auction, droit de suite

JEL Classification: D44, H20, Z11

Suggested Citation

Banternghansa, Chanont and Graddy, Kathryn, The Impact of the Droit De Suite in the UK: An Empirical Analysis (January 2009). CEPR Discussion Paper No. DP7136. Available at SSRN: https://ssrn.com/abstract=1345662

Chanont Banternghansa

Federal Reserve Bank of St. Louis ( email )

411 Locust St
Saint Louis, MO 63011
United States

Kathryn Graddy (Contact Author)

Brandeis University - Department of Economics ( email )

415 South Street MS 021
Waltham, MA 02453-2728
United States
781-736-8616 (Phone)
781-736-2269 (Fax)

HOME PAGE: http://people.brandeis.edu/~kgraddy/

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