Art market in EU: Selected factors analysis

One of the central questions while analyzing the art market concerns the factors affecting the works of art prices: the features of a painting (the subject of painting, quality, technique, size, art movements i.e.: Realism, Impressionism, Romanticism, Positivism and Historicism, Modernism, Ecole de Paris, Modern and Contemporary Art, the rarity of works etc.), the artist (fame and reputation - the number of paintings sold and maximum price, age – productivity profile), the nature of art market and the macroeconomic factors. There is a broad discussion in the world literature concerning various aspects of art as an investment – especially connected with the first two factors: the painting and the artist, but there is little achievement in the analysis of the link between the art prices and the broader economy. Some authors found robust influence of the income distribution on price levels of different assets (eg. real estate) – evidence of strong relationship between income inequality and art prices in United States until 2007 was found. Strong art price appreciation should be expected when American income inequality rises.  The aim of this article is to attempt to fill the gap in research of European (especially Polish) emerging art markets in the years of financial crisis. Using statistic data on the national economy in European countries, art indices and data from art auctions for the works of Polish artists the paper discusses the relationship between the prices of  paintings, GDP growth, wages dispersion and top incomes. The study attempts to find some country-specificity in the relationship between economic fundamentals and art prices.