Art and Money
William N. Goetzmann, Luc Renneboog, Christophe Spaenjers
American Economic Review · 2011 · Volume 101 · Issue 3
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's cointegration tests strongly suggest the existence of a long-run relation between top incomes and art prices.
Keywords
Index Numbers and Aggregation, leading indicators, Cultural Economics: Economics of the Arts and Literature
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