Entry of Painters in the Amsterdam Market of the Golden Age

35 Pages Posted: 4 Jan 2020

See all articles by Federico Etro

Federico Etro

Ca Foscari University of Venice

Elena Stepanova

Scuola Superiore Sant'Anna di Pisa

Date Written: March 27, 2015


We analyze the evolution of the price of paintings in the XVII century Amsterdam art market to test a hypothesis of endogenous entry: higher profitability should attract more entry of painters, which in turn should lead to artistic innovations and more intense competition. We build a price index for the representative painting inventoried in Dutch houses through hedonic regressions controlling for characteristics of the paintings (size, genre, placement in the house), the owners (job, religion, value of the collection, size of the house) and the painters. After a peak at the beginning of the century, the real price of paintings decreases until the end of the century: we provide anecdotal evidence for which high initial prices attracted entry of innovators, and econometric evidence on the causal relation between price movements and entry of painters. The time series analysis supports the idea for which increasing prices attracted entry of innovative painters.

Keywords: Art market, Endogenous entry, Dutch Golden Age, Hedonic prices, VAR analysis

JEL Classification: Z11, N00, D04

Suggested Citation

Etro, Federico and Stepanova, Elena, Entry of Painters in the Amsterdam Market of the Golden Age (March 27, 2015). University Ca' Foscari of Venice, Dept. of Economics Research Paper Series No. No. 07/WP/2015. Available at SSRN: https://ssrn.com/abstract=2585896 or http://dx.doi.org/10.2139/ssrn.2585896

Federico Etro (Contact Author)

Ca Foscari University of Venice ( email )

Dorsoduro 3246
Venice, Veneto 30123

Elena Stepanova

Scuola Superiore Sant'Anna di Pisa ( email )

Biblioteca Scuola Superiore Sant'Anna
Piazza Martiri della Liberta, n. 33
Pisa, 56127

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