Kraussl, Roman; Korteweg, Arthur; Verwijmeren, Patrick - Centre de Recherche en Économie Appliquée (CREA), … - 2013
This paper shows the importance of correcting for sample selection when investing in illiquid assets with endogenous trading. Using a large sample of 20,538 paintings that were sold repeatedly at auction between 1972 and 2010, we find that paintings with higher price appreciation are more likely...