Investment Returns and Economic Fundamentals in International Art Markets

L.D.R. Renneboog, C. Spaenjers

Research output: Working paperDiscussion paperOther research output

1171 Downloads (Pure)


Abstract: Works of art are neither easily tradable across borders, nor evaluated according to globally identical standards. We examine geographical segmentation and its effects on price formation and returns in the international art auction market. We find (i) a close connection between the country of sale and the type (e.g., nationality) of artworks sold; (ii) substantial international variation in average returns to art investments over the period 1971-2007; (iii) an impact of both global and local GDP growth and equity returns on national art market returns. Local fundamentals have not lost importance over time, despite increased economic integration (especially between the EU countries). Yet, country-specific economic factors matter less in determining the auction outcomes for high-end art. Our findings suggest the continuing importance of international demand differences in shaping the global art market, at least outside the top segment.
Original languageEnglish
Place of PublicationTilburg
Number of pages25
Publication statusPublished - 2014

Publication series

NameCentER Discussion Paper


  • Economics of art
  • art markets
  • home bias
  • geographical market segmentation
  • art auctions
  • hedonic regression


Dive into the research topics of 'Investment Returns and Economic Fundamentals in International Art Markets'. Together they form a unique fingerprint.

Cite this