Revisiting Baumol's Art as floating crap game

We show that Baumol's conclusion that returns on bonds are higher than returns on paintings is too pessimistic. There are segments in the market for which returns are significantly higher than returns on bonds and stocks, during long periods of time (20 to 40 years); since tastes do change slowly (though not in a predictable way), this may imply that beating the market is not impossible. We also construct price indexes for paintings over the last 200 years.

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Year of publication:	1993
Authors:	Ginsburgh, Victor A. ; Buelens, Nathalie
Institutions:	Solvay Brussels School of Economics and Management, Université Libre de Bruxelles

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Extent:	application/pdf text/plain
Series:	ULB Institutional Repository.
Type of publication:	Book / Working Paper
Notes:	Published in: European Economic Review (1993) v.37 n° 7,p.1351-1371
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008590620