Is there a bubble in the art market?
- 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.
| Author: | Roman KräusslORCiDGND, Thorsten Lehnert, Nicolas Martelin |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-355818 |
| URL: | https://www.ifk-cfs.de/fileadmin/downloads/publications/wp/2014/CFS_WP_493.pdf |
| Parent Title (English): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 493 |
| Series (Serial Number): | CFS working paper series (493) |
| Publisher: | Center for Financial Studies |
| Place of publication: | Frankfurt, M. |
| Document Type: | Working Paper |
| Language: | English |
| Year of Completion: | 2014 |
| Year of first Publication: | 2014 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2014/11/25 |
| Tag: | Alternative investments; Art market; Explosive behavior; Speculative bubbles |
| Issue: | May 2014 |
| Page Number: | 29 |
| HeBIS-PPN: | 351114300 |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Deutsches Urheberrecht |
