Measuring Returns on Investments in Collectibles
Abstract
This paper considers the question of how to measure and interpret the financial return to investing in collectibles. We review various methodologies for creating priced indexes and then discuss studies that explicitly calculate a rate of return to some set of collectibles. While most collectibles appear to yield positive real returns, the majority embody more risk and yield lower financial returns than stocks. Other characteristics of collectibles prices, such as covariance with other asset prices, are also examined.Download Info
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Article provided by American Economic Association in its journal Journal of Economic Perspectives.
Volume (Year): 13 (1999)
Issue (Month): 4 (Fall)
Pages: 193-212
Note: DOI: 10.1257/jep.13.4.193
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Related research
Keywords:Find related papers by JEL classification:
- Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Boyan Jovanovic, 2008. "Bubbles in Prices of Exhaustible Resources," 2008 Meeting Papers 26, Society for Economic Dynamics.
- Michael Hutter & Christian Knebel & Gunnar Pietzner & Maren Schäfer, 2007. "Two games in town: a comparison of dealer and auction prices in contemporary visual arts markets," Journal of Cultural Economics, Springer, vol. 31(4), pages 247-261, December.
- Nauro F. Campos & Renata Leite Barbosa, 2009.
"Paintings and numbers: an econometric investigation of sales rates, prices, and returns in Latin American art auctions,"
Oxford Economic Papers,
Oxford University Press, vol. 61(1), pages 28-51, January.
- Barbosa, Renata Leite & Campos, Nauro F, 2008. "Paintings and Numbers: An Econometric Investigation of Sales Rates, Prices and Returns in Latin American Art Auctions," CEPR Discussion Papers 6806, C.E.P.R. Discussion Papers.
- Campos, Nauro F & Leite Barbosa, Renata, 2008. "Paintings and Numbers: An Econometric Investigation of Sales Rates, Prices and Returns in Latin American Art Auctions," IZA Discussion Papers 3445, Institute for the Study of Labor (IZA).
- Xin Chen & Xian Chen, 2012. "Stamp characteristics and long-term return after issuance: evidence from new China stamps," China Finance Review International, Emerald Group Publishing, vol. 2(2), pages 351-376, August.
- Richard Agnello & Xiaowen Xu, 2006. "Art Prices and Race: Paintings by African American Artists and Their White Contemporaries," Working Papers 06-06, University of Delaware, Department of Economics.
- Victor Matheson & Robert Baade, 2004. "'Death effect' on collectible prices," Applied Economics, Taylor and Francis Journals, vol. 36(11), pages 1151-1155.
- Richard J. Agnello, 2002. "Investment Returns and Risk for Art: Evidence from Auctions of American Paintings," Eastern Economic Journal, Eastern Economic Association, vol. 28(4), pages 443-463, Fall.
- Erdal Atukeren & Aylin Seçkin, 2007. "On the valuation of psychic returns to art market investments," Economics Bulletin, AccessEcon, vol. 26(5), pages 1-12.
- Manfred Tietzel, 2001. ""Money for Nothing"? Die Preisbildung von Originalkunstwerken und Kopien," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 2(1), pages 15-29, 02.
- Spaenjers, C., 2011. "Essays in alternative investments," Open Access publications from Tilburg University urn:nbn:nl:ui:12-4944288, Tilburg University.
- Carey, Catherine, 2008. "Modeling collecting behavior: The role of set completion," Journal of Economic Psychology, Elsevier, vol. 29(3), pages 336-347, June.
- Sanning, Lee W. & Shaffer, Sherrill L. & Sharratt, Jo Marie, 2007. "Alternative investments: the case of wine," Working Papers 37322, American Association of Wine Economists.
- Victor A. Matheson & Robert A. Baade, 2003. "The “Death-Effect” on Collectible Prices," Department of Economics Working Papers 2003-12, Department of Economics, Williams College.
- Boyan Jovanovic, 2007.
"Bubbles in Prices of Exhaustible Resources,"
Levine's Working Paper Archive
122247000000001414, David K. Levine.
- Jovanovic, Boyan, 2008. "Bubbles In Prices Of Exhaustible Resources," Working Papers 45830, American Association of Wine Economists.
- Boyan Jovanovic, 2007. "Bubbles in Prices of Exhaustible Resources," NBER Working Papers 13320, National Bureau of Economic Research, Inc.
- repec:ebl:ecbull:v:26:y:2007:i:5:p:1-12 is not listed on IDEAS
- Apostolou, Menelaos, 2011. "Why men collect things? A case study of fossilised dinosaur eggs," Journal of Economic Psychology, Elsevier, vol. 32(3), pages 410-417, June.
- Dimson, E. & Spaenjers, C., 2009.
"Ex-Post: The Investment Performance of Collectible Stamps,"
Discussion Paper
2009-64, Tilburg University, Center for Economic Research.
- Dimson, Elroy & Spaenjers, Christophe, 2011. "Ex post: The investment performance of collectible stamps," Journal of Financial Economics, Elsevier, vol. 100(2), pages 443-458, May.
- William J. Baumol, 2007. "Returns in Cost Diseased Markets with Psychic Benefits: Two Apparently Conflicting Models of Equilibrium," Working Papers 07-16, Utrecht School of Economics.
- Richard J. Agnello, 2006. "Do U.S. Paintings Follow the CAPM? Findings Disaggregated by Subject, Artist, and Value of the Work," Working Papers 06-02, University of Delaware, Department of Economics.
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