Art and Money

41 Pages Posted: 26 Feb 2020 Last revised: 12 May 2023

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

University of Colorado Boulder - Leeds School of Business

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). NBER Working Paper No. w15502, 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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European Corporate Governance Institute (ECGI) ( email )

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Tilburg Law and Economics Center (TILEC) ( email )

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Christophe Spaenjers

University of Colorado Boulder - Leeds School of Business ( email )

Boulder, CO 80309-0419
United States

HOME PAGE: http://christophespaenjers.com

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