nep-cul New Economics Papers
on Cultural Economics
Issue of 2007‒02‒24
three papers chosen by
Roberto Zanola
University of the Piemonte Orientale

  1. Multiple job holding: the artist’s labor supply approach By Carlos Casacuberta; Néstor Gandelman
  2. Economic Valuation of Environmental Values of the Landscape Development and Protection Area of Volcji Potok By Verbic, Miroslav; Erker, Renata
  3. Hedonic price functions By Lars Nesheim

  1. By: Carlos Casacuberta (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Néstor Gandelman (Universidad ORT, Uruguay)
    Abstract: This paper analyzes a labor supply model in which individuals maximize a utility function that depends on leisure time, consumption and time devoted to an activity that is termed “artistic”. This activity may generate income that depends non linearly on hours dedicated to it. The individual can also work in the labor market (an activity that does not increase utility by itself) in exchange for an hourly wage, and obtain income not related to hours. Conditions are obtained that sort individuals in two groups, part time and full time artists, deriving their labor supply functions in both activities. The predictions of the model are tested empirically using a sample of musicians from a Uruguayan performing rights society.
    Keywords: Labor supply, time allocation, artist’s labor supply, cultural economics
    JEL: J22 Z11
    Date: 2006–11
  2. By: Verbic, Miroslav; Erker, Renata
    Abstract: When the market for a certain good is competitive enough, economic activities can be studied by the market pricing mechanism. Because this is usually not feasible in case of environmental goods with embodied natural and cultural heritage, particular methods for economic valuation of such goods have to be applied. The present article represents the economic valuation of the Landscape Development and Protection Area of Vol誩 Potok, which is an important Slovenian cultural landscape area with internationally recognized characteristics. For this purpose we have chosen the method of contingent valuation and performed an econometric analysis of stated and true willingness-to-pay. We obtained the value of willingness-to-pay and determined its determinants. We also made an attempt to control for different biases that arise in such analyses. At last, we used the adjusted average individual value of willingness-to-pay to calculate the aggregate willingness-to-pay.
    Keywords: bivariate probit model; contingent valuation method; discrete choice method; embedding effects; environmental values; starting point bias; willingness-to-pay
    JEL: Q51 Q56 C51
    Date: 2007–01
  3. By: Lars Nesheim (Institute for Fiscal Studies)
    Abstract: A hedonic price function describes the equilibrium relationship between characteristics of a product and its price. They are used to predict prices of new goods, to adjust for quality change in price indexes, and to measure consumer and producer valuations of differentiated products. They emerge as market outcomes from both competitive and non-competitive markets. The functional form is determined by the distribution of buyers and their preferences, the distribution of sellers and their costs, and the structure of competition in the market.
    Date: 2006–09

This nep-cul issue is ©2007 by Roberto Zanola. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.