Bubbles & Bought-Ins: Reevaluating Price Movements in the Art Market

Employs two tests for bubbles in the art market. First, a right-hand forward recursive augmented Dickey-Fuller test to identify explosive price movements. Second, a test for the statistical significance of hedonic regression price index coefficients after controlling for equity market performance. Finds strong evidence for a speculative bubble in the pre-Great Recession "Post-War & Contemporary" market. Evidence for this bubble diminishes but does not dissipate after accounting for the effect of failed sales on index returns.

About this item

Creator
Silas Wuerth
Date
2020-01-01
Contributor
Mathew Botsch, Advisor
Bowdoin Department or Program
Economics
Subject
Behavioral Economics|Finance|Other Economics|Painting|Social and Behavioral Sciences|Bubble|art|painting|price|unsold|sold|speculation|finance|economics|dickey-fuller
Access
Open access

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