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on Cultural Economics |
| By: | John Galbraith; Douglas James Hodgson |
| Abstract: | In hedonic regression models of the valuation of works of art, the age at which an artist produces a particular work, or an indicator variable for periods in his or her artistic career, is often found to have highly significant predictive value. Most existing results are based on regressions that pool large groups of painters. Although it is of interest to estimate such regressions for individual artists, the sample sizes are often inadequate for a model that would also include the large number of other relevant variables. We address this problem of inadequate degrees of freedom in individual artist regressions by using two statistical methods (model averaging and dimension reduction) to incorporate information from a potentially large number of predictor variables, allowing us to work with relatively small samples. We find that individual age-valuation profiles can differ substantially from general pooled profiles, suggesting that methods that are more responsive to the unique features of individual artists may provide better predictions of art valuations at auction. <P>In hedonic regression models of the valuation of works of art, the age at which an artist produces a particular work, or an indicator variable for periods in his or her artistic career, is often found to have highly significant predictive value. Most existing results are based on regressions that pool large groups of painters. Although it is of interest to estimate such regressions for individual artists, the sample sizes are often inadequate for a model that would also include the large number of other relevant variables. We address this problem of inadequate degrees of freedom in individual artist regressions by using two statistical methods (model averaging and dimension reduction) to incorporate information from a potentially large number of predictor variables, allowing us to work with relatively small samples. We find that individual age-valuation profiles can differ substantially from general pooled profiles, suggesting that methods that are more responsive to the unique features of individual artists may provide better predictions of art valuations at auction. |
| Keywords: | Dimension reduction, factor-augmented model, model averaging, réduction de dimension, modèle de facteur augmenté, moyenne de modèles |
| Date: | 2009–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2009s-41&r=cul |
| By: | Gianmarco I.P. Ottaviano (Bocconi University, DEP-KITeS, FEEM and CEPR); Giovanni Prarolo (University of Bologna and FEEM) |
| Abstract: | We study how the city system is affected by the possibility for the members of the same cultural diaspora to interact across different cities. In so doing, we propose a simple two- city model with two mobile cultural groups. A localized externality fosters the productivity of individuals when groups interact in a city. At the same time, such interaction dilutes cultural identities and reduces the consumption of culture-specific goods and services. We show that the two groups segregate in different cities when diaspora members find it hard to communicate at distance whereas they integrate in multicultural cities when communication is easy. The model generates situations in which segregation is an equilibrium but is Pareto dominated by integration. |
| Keywords: | Cultural Identity, Cosmopolitan City, Productiviy |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.72&r=cul |
| By: | Giovanni Prarolo (Università di Bologna); Elena Bellini (FEEM); Gianmarco I.P. Ottaviano (University of Bologna, FEEM and CEPR); Dino Pinelli (FEEM) |
| Abstract: | We investigate the relationship between diversity and productivity in Europe using an original dataset covering the NUTS 3 regions of 12 countries of the EU15 (Austria, Belgium, Denmark, France, former Western Germany, Ireland, Italy, the Netherlands, Portugal, Spain, Sweden and the United Kingdom). In so doing, we follow the empirical methodology developed by Ottaviano and Peri (2006a) in the case of US cities. The main idea is that, as cultural diversity may affect both production and consumption through positive or negative externalities, the joint estimation of price and income equations is needed to identify the dominant effect. Based on this methodology, we find that diversity is positively correlated with productivity. Moreover, we find evidence that causation runs from the former to the latter. These results for EU regions are broadly consistent with those found by Ottaviano and Peri for US cities. |
| Keywords: | Cultural Diversity, Economic Performance, Productivity, Europe |
| JEL: | O5 O11 O57 R5 R58 |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.63&r=cul |
| By: | Mason, Patrick |
| Abstract: | This paper contrasts the explanatory power of the mono-cultural and diversity models of racial disparity. The mono-cultural model ignores nativity and ethnic differences among African Americans. The diversity model assumes that culture affects both intra- and interracial labor market disparity. The diversity model seeks to enhance our ability to understand the relative merits of culture versus market discrimination as determinants of racial inequality in labor market outcomes. Our results are consistent with the diversity model of racial inequality. Specifically, racial disparity consists of the following outcomes: 1) persistent racial wage and employment effects between both native and immigrant African Americans and whites, 2) limited ethnicity effects among African Americans, 3) diverse employment and wage effects among native and immigrant African Americans, 4) intra-racial wage penalties (premiums) for immigrant (native) African Americans, and 5) evidence of relatively higher unobserved productivity-linked attributes among Caribbean-English immigrants. There are regional and intertemporal variations in these inequalities. |
| Keywords: | racial discrimination; racial inequality; immigration; identity; African American; Caribbean; African Diaspora; wage discrimination; employment discrimination; Hispanic; acting white; multi-racial; skin shade |
| JEL: | J31 J21 J61 J15 Z13 J7 J16 |
| Date: | 2009–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:17497&r=cul |
| By: | Amy King; Andrew Leigh |
| Abstract: | Are beautiful politicians more likely to be elected? To test this, we use evidence from Australia, a country in which voting is compulsory, and in which voters are given ‘How to Vote’ cards depicting photos of the major party candidates as they arrive to vote. Using raters chosen to be representative of the electorate, we assess the beauty of political candidates from major political parties, and then estimate the effect of beauty on voteshare for candidates in the 2004 federal election. Beautiful candidates are indeed more likely to be elected, with a one standard deviation increase in beauty associated with a 1½ – 2 percentage point increase in voteshare. Our results are robust to several specification checks: adding party fixed effects, dropping well-known politicians, using non-Australian beauty raters, omitting candidates of non-Anglo Saxon appearance, controlling for age, and analyzing the ‘beauty gap’ between candidates running in the same electorate. The marginal effect of beauty is larger for male candidates than for female candidates, and appears to be approximately linear. Consistent with the theory that returns to beauty reflect discrimination, we find suggestive evidence that beauty matters more in electorates with a higher share of apathetic voters. |
| Keywords: | economics of beauty, elections, voter rationality, information shortcuts, thin slices |
| JEL: | D72 J45 J71 |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:auu:dpaper:616&r=cul |