Art and Money

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

Research output: Working paperDiscussion paperOther research output

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Abstract

This paper investigates the impact of equity markets and top incomes on art prices. Using a newly constructed art market index, we demonstrate that equity market returns have had a significant impact on the price level in the art market over the last two centuries. 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-run relation between top incomes and art prices.
Original languageEnglish
Place of PublicationTilburg
PublisherFinance
Number of pages41
Volume2010-08
Publication statusPublished - 2010

Publication series

NameCentER Discussion Paper
Volume2010-08

Fingerprint

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

Keywords

  • Art market
  • Equities
  • Income inequality
  • Cointegration
  • Comovement

Cite this

Goetzmann, W., Renneboog, L. D. R., & Spaenjers, C. (2010). Art and Money. (CentER Discussion Paper; Vol. 2010-08). Tilburg: Finance.
Goetzmann, W. ; Renneboog, L.D.R. ; Spaenjers, C. / Art and Money. Tilburg : Finance, 2010. (CentER Discussion Paper).
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Goetzmann, W, Renneboog, LDR & Spaenjers, C 2010 'Art and Money' CentER Discussion Paper, vol. 2010-08, Finance, Tilburg.

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

Tilburg : Finance, 2010. (CentER Discussion Paper; Vol. 2010-08).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Art and Money

AU - Goetzmann, W.

AU - Renneboog, L.D.R.

AU - Spaenjers, C.

N1 - Subsequently published in American Economic Review (2011) Pagination: 41

PY - 2010

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N2 - This paper investigates the impact of equity markets and top incomes on art prices. Using a newly constructed art market index, we demonstrate that equity market returns have had a significant impact on the price level in the art market over the last two centuries. 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-run relation between top incomes and art prices.

AB - This paper investigates the impact of equity markets and top incomes on art prices. Using a newly constructed art market index, we demonstrate that equity market returns have had a significant impact on the price level in the art market over the last two centuries. 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-run relation between top incomes and art prices.

KW - Art market

KW - Equities

KW - Income inequality

KW - Cointegration

KW - Comovement

M3 - Discussion paper

VL - 2010-08

T3 - CentER Discussion Paper

BT - Art and Money

PB - Finance

CY - Tilburg

ER -

Goetzmann W, Renneboog LDR, Spaenjers C. Art and Money. Tilburg: Finance. 2010. (CentER Discussion Paper).