The Iconic Boom in Modern Russian Art

Posted: 26 Feb 2020

See all articles by Luc Renneboog

Luc Renneboog

Tilburg University - Department of Finance; European Corporate Governance Institute (ECGI); Tilburg Law and Economics Center (TILEC)

Christophe Spaenjers

HEC Paris - Finance Department

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Date Written: June 3, 2010


Motivated by the fast growth of personal wealth in emerging economies like Russia, we 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. Our 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. Especially art from the nineteenth century has performed 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. Our results illustrate how the new wealth created in fast-developing economies has its impact on the demand for art from these countries, which reflects a home bias in taste.

Keywords: Art, Emerging markets, Hedonic regressions, Wealth

JEL Classification: F0, G1, Z11

Suggested Citation

Renneboog, Luc and Spaenjers, Christophe, The Iconic Boom in Modern Russian Art (June 3, 2010). Journal of Alternative Investments, Vol. 13, No. 3, 2011, , Available at SSRN:

Luc Renneboog

Tilburg University - Department of Finance ( email )

P.O. Box 90153
Warandelaan 2
5000 LE Tilburg
+13 31 466 8210 (Phone)
+13 31 466 2875 (Fax)

European Corporate Governance Institute (ECGI)

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels

Tilburg Law and Economics Center (TILEC)

Warandelaan 2
Tilburg, 5000 LE

Christophe Spaenjers (Contact Author)

HEC Paris - Finance Department ( email )

1 rue de la Liberation
Jouy-en-Josas Cedex, 78351

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