Is there a bubble in the art market?

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CFS Working Paper Series ; No. 493

Classification and Topics

• Classification: Wirtschaft ; Asset Pricing; Trading Volume; Bond Interest Rates ; Information and Market Efficiency; Event Studies; Insider Trading ; Cultural Economics: Economics of the Arts and Literature
• Subject: Art market ; Alternative investments ; Speculative bubbles ; Explosive behavior

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kräussl, Roman ; Lehnert, Thorsten ; Martelin, Nicolas
• Event: Veröffentlichung
• (who): Goethe University Frankfurt, Center for Financial Studies (CFS)
• (where): Frankfurt a. M.
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/103756
• URN: urn:nbn:de:hebis:30:3-355818
• Last update: 10.03.2025, 11:45 AM CET