Does Psychological Return Matter? Evidence from China Stamp Market
Posted: 20 Apr 2009 Last revised: 27 Sep 2012
Date Written: April 19, 2009
Previous literature has challenged the traditional claim that collectibles have high returns and expensive collectibles tend to return more. However, only financial returns were examined previously while psychological returns was completely overlooked, which may result in underestimation of returns on collectibles. This paper examines the returns from investment in China stamp market and the existence of psychological returns. The empirical results suggest that stamp returns in China stamp market are very dispersive and expensive stamps tend to have a low return. Potential psychological returns generators have negative effects on financial return of stamps, which implies the existence of psychological return.
Keywords: Collectibles Stamp Returns Psychological Returns
JEL Classification: G12, Z11
Suggested Citation: Suggested Citation