41 Pages Posted: 17 Nov 2009
Date Written: November 2009
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: 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