Art and Money

W. Goetzmann, L.D.R. Renneboog, C. Spaenjers

Research output: Book/ReportReportProfessional

Abstract

This paper investigates the impact of equity markets and top incomes on art prices. Using a long-term art market index that incorporates information on repeated sales since the eighteenth century, we demonstrate that both same-year and lagged equity market returns have a significant impact on the price level in the art market. Over a shorter time frame, we also find empirical evidence that an increase in income inequality may lead to higher prices for art, in line with the results of a numerical simulation analysis. Finally, the results of Johansen cointegration tests strongly suggest the existence of a long-term relation between top incomes and art prices.
Original languageEnglish
Place of PublicationNew Haven
PublisherYale University
Number of pages41
Publication statusPublished - 2009

Publication series

NameYale ICF Working Paper
No.09-26

Fingerprint

Top incomes
Art market
Art
Equity markets
Simulation analysis
18th century
Price level
Market returns
Empirical evidence
Cointegration test
Market index
Numerical simulation
Income inequality

Keywords

  • Art investments
  • Cointegration
  • Comovement
  • Equities
  • Income inequality
  • Long-term returns

Cite this

Goetzmann, W., Renneboog, L. D. R., & Spaenjers, C. (2009). Art and Money. (Yale ICF Working Paper; No. 09-26). New Haven: Yale University.
Goetzmann, W. ; Renneboog, L.D.R. ; Spaenjers, C. / Art and Money. New Haven : Yale University, 2009. 41 p. (Yale ICF Working Paper; 09-26).
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Goetzmann, W, Renneboog, LDR & Spaenjers, C 2009, Art and Money. Yale ICF Working Paper, no. 09-26, Yale University, New Haven.

Art and Money. / Goetzmann, W.; Renneboog, L.D.R.; Spaenjers, C.

New Haven : Yale University, 2009. 41 p. (Yale ICF Working Paper; No. 09-26).

Research output: Book/ReportReportProfessional

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KW - Income inequality

KW - Long-term returns

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Goetzmann W, Renneboog LDR, Spaenjers C. Art and Money. New Haven: Yale University, 2009. 41 p. (Yale ICF Working Paper; 09-26).