Is there a bubble in the art market?

Roman Kräussl, Thorsten Lehnert and Nicolas Martelin

No 493, CFS Working Paper Series from Center for Financial Studies (CFS)

Abstract: The record-breaking prices observed in the art market over the last three years raise the question of whether we are experiencing a speculative bubble. Given the difficulty to determine the fundamental value of artworks, we apply a right-tailed unit root test with forward recursive regressions (SADF test) to detect explosive behaviors directly in the time series of four different art market segments ("Impressionist and Modern", "Post-war and Contemporary", "American", and "Latin American") for the period from 1970 to 2013. We identify two historical speculative bubbles and find an explosive movement in today's "Post-war and Contemporary" and "American" fine art market segments.

Keywords: Art market; Alternative investments; Speculative bubbles; Explosive behavior (search for similar items in EconPapers)
JEL-codes: G12 G14 Z11 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-cul and nep-lam
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Is there a bubble in the art market? (2016)
Working Paper: Is there a Bubble in the Art Market? (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cfswop:493

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