TY  - BOOK
AU  - Pénasse,Julien
AU  - Renneboog,Luc
AU  - Scheinkman,José A.
ED  - National Bureau of Economic Research.
TI  - When a Master Dies: Speculation and Asset Float 
T2  - NBER working paper series
PY  - 2020///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - March 2020; Hardcopy version available to institutional subscribers
N2  - The death of an artist constitutes a negative supply shock to his future production; in finance terms, this supply shock reduces the artist's float. Intuition may thus suggest that this supply shock reduces the future auction volume of the artist.  However, if collectors have fluctuating heterogeneous beliefs, since they  cannot sell short, prices overweigh optimists' beliefs and have a speculative component. If collectors have limited capacity to bear risk,  an increase in float may decrease subsequent turnover and prices (Hong et al. 2006). Symmetrically, a negative supply shock leads to an augmentation of prices and turnover. We find strong support for this prediction in the data on art auctions that we examine
UR  - https://www.nber.org/papers/w26831
UR  - http://dx.doi.org/10.3386/w26831
ER  -