Art as an alternative asset class: risk and return characteristics of the Middle Eastern & Northern African art markets

This chapter analyzes the risk and return characteristics of investments in artists from the Middle East and Northern Africa (MENA) region over the sample period 2000 to 2012. With hedonic regression modeling we create a
This chapter analyzes the risk and return characteristics of investments in artists from the Middle East and Northern Africa (MENA) region over the sample period 2000 to 2012. With hedonic regression modeling we create an annual index that is based on 3,544 paintings created by 663 MENA artists. Our empirical results prove that investing in such a hypothetical index provides strong financial returns. While the results show an exponential growth in sales since 2006, the geometric annual return of the MENA art index is a stable13.9 percent over the whole period. We conclude that investing in MENA paintings would have been profitable but also note that we examined the performance of an emerging art market that has only seen an upward trend without any correction, yet.
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Metadaten
Author:Roman Kräussl
URN:urn:nbn:de:hebis:30:3-356082
URL:https://www.ifk-cfs.de/fileadmin/downloads/publications/wp/2014/CFS_WP_494.pdf
Parent Title (English):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 494
Series (Serial Number):CFS working paper series (494)
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 price index; Optimal Asset Allocation
Issue:June 2014
Pagenumber:29
HeBIS PPN:351114319
Institutes:Wirtschaftswissenschaften
Center for Financial Studies (CFS)
Dewey Decimal Classification:330 Wirtschaft
JEL-Classification:G11 Portfolio Choice; Investment Decisions
Z11 Economics of the Arts and Literature
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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