Increase of art creatives: models, calculations, ukrainian segment of the market

Abstract

. The paper describes a variant of the repeat sales methodology, used by art market analysts, as well as appraisers using comparative approach in assessing the value of works of art. Here we describe a new model aimed to, streamline the necessary calculations while maintaining the accuracy at the required level. We ranked economic success of the works of certain famous Ukrainian artists using data from the Artprice web-based resource (https://www.artprice.com). Included in the analysis were the sales outcomes reported by international art auctions for artworks from a certain part of the Soviet period and of contemporary Ukrainian artists. The ranks of the top ten masters of Ukrainian social realism in Ukrainian art market were compared to sale prices of works of 22 contemporary Ukrainian artists in international art auctions. The sample for the latter is made with more than 500 sales including very recent ones made in 2017. Comparison of these data with the results for TOP90 of the world's most expensive art sales in 2016 indicates lower demand for Ukrainian artists in the context of world top sales. However, the dynamics of profitability of Ukrainian works over time is overall positive. Methodology. Based on the model of cash deposit value growth in time, the author uses the method, well-known to appraisers, that allows to calculate the profit from movable property by analogy with the profit from a bank deposit. The basis for calculations is the data on the sale of the most expensive 100 paintings of 2016 year, as well published in web-based resource (https://www.artprice.com).