Art and Money

34 Pages Posted: 7 Nov 2009 Last revised: 13 Mar 2013

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: April 28, 2010

Abstract

This paper investigates the impact of equity markets and top incomes on art prices. Using a newly constructed art market index, we demonstrate that equity market returns have had a significant impact on the price level in the art market over the last two centuries. We also find evidence that an increase in income inequality may lead to higher prices for art. Finally, the results of Johansen cointegration tests strongly suggest the existence of a long-run relation between top incomes and art prices.

Keywords: Art market, Equities, Income inequality, Cointegration, Comovement

JEL Classification: D31, D44, G1, Z11.

Suggested Citation

Goetzmann, William N. and Renneboog, Luc and Spaenjers, Christophe, Art and Money (April 28, 2010). Yale ICF Working Paper No. 09-26; TILEC Discussion Paper No. 2010-002; CentER Discussion Paper Series No. 2010-08. Available at SSRN: https://ssrn.com/abstract=1501171 or http://dx.doi.org/10.2139/ssrn.1501171

William N. Goetzmann (Contact Author)

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

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P.O. Box 208200
New Haven, CT 06520-8200
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203-436-9252 (Fax)

HOME PAGE: http://viking.som.yale.edu

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Luc Renneboog

Tilburg University - Department of Finance ( email )

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

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

Tilburg Law and Economics Center (TILEC)

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Christophe Spaenjers

HEC Paris - Finance Department ( email )

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

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