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The Iconic Boom in Modern Russian Art

Author

Listed:
  • Christophe Spaenjers

    (Department of Economics - Tilburg University [Netherlands])

  • Luc Renneboog

    (Department of Economics - Tilburg University [Netherlands])

Abstract

Motivated by the fast growth of personal wealth in emerging economies like Russia, the authors investigate the investment performance of modern Russian art. A hedonic analysis of more than 50,000 art transactions results in a geometric average return of 3.97%, in real USD terms, between 1967 and 2007. The Russian art index shows an impressive annualized return of 12.37% since 1997. This is roughly double the average yearly appreciation of a global art market index over the same period. Art from the nineteenth century has performed especially well. The returns on Russian art correlate positively with the returns on global equities, gold, and (especially) London real estate. Also, they seem to be affected more by trends in oil prices than are global art prices. The results illustrate how the new wealth created in fast-developing economies has an impact on the demand for art from these countries, which reflects a home bias in taste.

Suggested Citation

  • Christophe Spaenjers & Luc Renneboog, 2011. "The Iconic Boom in Modern Russian Art," Post-Print hal-00623476, HAL.
    • Handle: RePEc:hal:journl:hal-00623476
    DOI: 10.3905/jai.2011.13.3.067
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    Citations

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    Cited by:

    1. Spaenjers, Christophe & Goetzmann, William N. & Mamonova, Elena, 2015. "The economics of aesthetics and record prices for art since 1701," Explorations in Economic History, Elsevier, vol. 57(C), pages 79-94.
    2. William N. Goetzmann & Luc Renneboog & Christophe Spaenjers, 2011. "Art and Money," American Economic Review, American Economic Association, vol. 101(3), pages 222-226, May.
    3. Renneboog, L.D.R. & Spaenjers, C., 2014. "Investment Returns and Economic Fundamentals in International Art Markets," Discussion Paper 2014-018, Tilburg University, Center for Economic Research.
    4. Demir, Ender & Gozgor, Giray & Sari, Emre, 2018. "Dynamics of the Turkish paintings market: A comprehensive empirical study," Emerging Markets Review, Elsevier, vol. 36(C), pages 180-194.
    5. Lasse Steiner & Bruno S. Frey & Magnus Resch, 2014. "Who Collects Art? An International Empirical Assessment," CREMA Working Paper Series 2014-03, Center for Research in Economics, Management and the Arts (CREMA).
    6. Charlin, Ventura & Cifuentes, Arturo, 2013. "A new financial metric for the art market," MPRA Paper 50186, University Library of Munich, Germany.
    7. Kim Oosterlinck & Anne-Sophie Radermecker & Yuqing Song, 2025. "The valuation of copies for Chinese artworks," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 49(1), pages 99-140, March.
    8. Daiva Jurevičienė & Božena Kostecka, 2014. "Peculiarities of selection of investment artworks," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2014(5), pages 71-88.
    9. Francesco Angelini & Massimiliano Castellani & Pierpaolo Pattitoni, 2023. "You can’t export that! Export ban for modern and contemporary Italian art," European Journal of Law and Economics, Springer, vol. 56(3), pages 533-557, December.
    10. Dobrynskaya, Victoria & Kishilova, Julia, 2022. "Lego: The Toy Of Smart Investors," Research in International Business and Finance, Elsevier, vol. 59(C).
    11. Lasse Steiner & Bruno S. Frey & Magnus Resch, 2013. "Home is where your art is: the home bias of art collectors," ECON - Working Papers 135, Department of Economics - University of Zurich.
    12. Kim Oosterlinck & Anne-Sophie Radermecker & Yuqing Song, 2023. "The Valuation of Copies for Chinese Artworks," Working Papers CEB 23-008, ULB -- Universite Libre de Bruxelles.
    13. Anne-Sophie V. E. Radermecker, 2019. "Artworks without names: an insight into the market for anonymous paintings," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 43(3), pages 443-483, September.
    14. Helen Higgs & John Forster, 2014. "The auction market for artworks and their physical dimensions: Australia—1986 to 2009," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(1), pages 85-104, February.
    15. Shi, Yang & Xu, Hui & Wang, Mancang & Conroy, Paul, 2017. "Home bias in domestic art markets: Evidence from China," Economics Letters, Elsevier, vol. 159(C), pages 201-203.

    More about this item

    Keywords

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    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • F0 - International Economics - - General
    • G1 - Financial Economics - - General Financial Markets
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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