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Art and Money

  • William Goetzmann
  • Luc Renneboog
  • Christophe Spaenjers

This paper investigates the impact of equity markets and top incomes on art prices. Using a long-term art market index that incorporates information on repeated sales since the eighteenth century, we demonstrate that both same-year and lagged equity market returns have a significant impact on the price level in the art market. Over a shorter time frame, we also find empirical evidence that an increase in income inequality may lead to higher prices for art, in line with the results of a numerical simulation analysis. Finally, the results of Johansen cointegration tests strongly suggest the existence of a long-term relation between top incomes and art prices.

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File URL: http://icfpub.som.yale.edu/publications/2426
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Paper provided by Yale School of Management in its series Yale School of Management Working Papers with number amz2426.

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Date of creation: 01 Nov 2009
Date of revision: 01 Jan 2010
Handle: RePEc:ysm:somwrk:amz2426
Contact details of provider: Web page: http://icf.som.yale.edu/

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  22. Renneboog, L.D.R. & Spaenjers, C., 2009. "The Iconic Boom in Modern Russian Art," Discussion Paper 2009-70, Tilburg University, Center for Economic Research.
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  32. Renneboog, L.D.R. & Spaenjers, C., 2009. "Buying Beauty : On Prices and Returns in the Art Market," Discussion Paper 2009-15, Tilburg University, Center for Economic Research.
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