Year of Graduation

2020

Level of Access

Open Access Thesis

Embargo Period

5-11-2020

Department or Program

Economics

First Advisor

Mathew Botsch

Abstract

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.

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