Art and Money

41 Pages Posted: 26 Feb 2020 Last revised: 11 Nov 2021

See all articles by William N. Goetzmann

William N. Goetzmann

Yale School of Management - International Center for Finance; National Bureau of Economic Research (NBER)

Luc Renneboog

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

Christophe Spaenjers

HEC Paris - Finance Department

Multiple version iconThere are 2 versions of this paper

Date Written: November 2009

Abstract

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.

Suggested Citation

Goetzmann, William N. and Renneboog, Luc and Spaenjers, Christophe, Art and Money (November 2009). Available at SSRN: https://ssrn.com/abstract=1505826

William N. Goetzmann (Contact Author)

Yale School of Management - International Center for Finance ( email )

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National Bureau of Economic Research (NBER)

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Luc Renneboog

Tilburg University - Department of Finance ( email )

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Christophe Spaenjers

HEC Paris - Finance Department ( email )

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France

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