@techreport{8d25ec2578dc4cdcb054f1f3b50053a8,
title = "Pricing Art and the Art of Pricing: On Returns and Risk in Art Auction Markets",
abstract = "We study price determinants and investment performance of art using a vast sample of transactions worldwide over the past 60 years. We focus on paintings and drawings, which have appreciated at a real (nominal) annual return of 2.49% (6.24%). Higher art returns are reached for paintings at the high end of the price distribution, oil paintings, more recent art movements, and transactions by reputable auction houses. The risk–return trade-off of paintings underperforms that of other passion investments. Paintings{\textquoteright} Sharpe ratios are below those of stocks, bonds, and gold but outperform those of commodities and real estate. Investments in paintings enter the optimal investment portfolio. ",
keywords = "auction, art investment, cultural economics, hedonic pricing model, repeat sales model",
author = "Yuexin Li and X. Ma and Luc Renneboog",
note = "CentER Discussion Paper Nr. 2021-018",
year = "2021",
month = jul,
day = "19",
language = "English",
volume = "2021-018",
series = "CentER Discussion Paper",
publisher = "CentER, Center for Economic Research",
type = "WorkingPaper",
institution = "CentER, Center for Economic Research",
}