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Measuring Returns on Investments in Collectibles

Author

Listed:
  • Benjamin J. Burton
  • Joyce P. Jacobsen

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.

Suggested Citation

  • Benjamin J. Burton & Joyce P. Jacobsen, 1999. "Measuring Returns on Investments in Collectibles," Journal of Economic Perspectives, American Economic Association, vol. 13(4), pages 193-212, Fall.
    • Handle: RePEc:aea:jecper:v:13:y:1999:i:4:p:193-212
    Note: DOI: 10.1257/jep.13.4.193
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.13.4.193
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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