Art and Money
William N. Goetzmann
Yale School of Management - International Center for Finance; National Bureau of Economic Research (NBER)
Tilburg University - Department of Finance; European Corporate Governance Institute (ECGI); Tilburg Law and Economics Center (TILEC)
HEC Paris - Finance Department
April 28, 2010
Yale ICF Working Paper No. 09-26
TILEC Discussion Paper No. 2010-002
CentER Discussion Paper Series No. 2010-08
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.
Number of Pages in PDF File: 34
Keywords: Art market, Equities, Income inequality, Cointegration, Comovement
JEL Classification: D31, D44, G1, Z11.
Date posted: November 7, 2009 ; Last revised: March 13, 2013