nep-cul New Economics Papers
on Cultural Economics
Issue of 2009‒11‒27
six papers chosen by
Roberto Zanola
University of the Piemonte Orientale

  1. Digital Technology and the Allocation of Ownership in the Music Industry By Maija Halonen-Akatwijuka; Tobias Regner
  2. One TV, One Price? By Imbs, Jean; Mumtaz, Haroon; Ravn, Morten O.; Rey, Hélène
  3. Cultural Identity and Knowledge Creation in Cosmopolitan Cities By Ottaviano, Gianmarco Ireo Paolo; Prarolo, Giovanni
  4. Does Culture Affect Unemployment? Evidence from the Röstigraben By Brügger, Beatrix; Lalive, Rafael; Zweimüller, Josef
  5. Product-Based Cultural Change: Is the Village Global? By Maystre, Nicolas; Olivier, Jacques; Thoenig, Mathias; Verdier, Thierry
  6. Culture, Policies and Labor Market Outcomes By Giavazzi, Francesco; Schiantarelli, Fabio; Serafinelli, Michel

  1. By: Maija Halonen-Akatwijuka (University of Bristol); Tobias Regner (Max Planck Institute of Economics, Jena)
    Abstract: We apply the property rights theory of Grossman-Hart-Moore in the music industry and study the optimal allocation of copyright between the artists who create music and the labels who promote and distribute it. Digital technology opens up a role for new intermediaries. We find that entry of online platforms occurs only if they are sufficiently more productive in distribution than the incumbent label. Furthermore, entry leads to a change in bargaining positions and it can become optimal for the copyright to be shifted from the label to the artist.
    Keywords: property rights theory, copyright, internet, music industry
    JEL: D23 L22 L23 L82 L86
    Date: 2009–11–17
    URL: http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-096&r=cul
  2. By: Imbs, Jean; Mumtaz, Haroon; Ravn, Morten O.; Rey, Hélène
    Abstract: We use a unique dataset on television prices across European countries and regions to investigate the sources of differences in price levels. Our findings are as follows: (i) Quality is a crucial determinant of price differences. Even in an integrated economic zone as Europe, rich economies tend to consume higher quality goods. This effect accounts for the lion’s share of international price dispersion. (ii) Sizable international price differentials subsist even for the same television sets. The average bilateral price difference is as high as 80 euros, or 8% of the average TV price in our sample. (iii) EMU countries display lower price dispersion than non-EMU countries. (iv) Absolute price differentials and relative price volatility are positively correlated with exchange rate volatility, but not with conventional measures of transport costs. (v) Importantly we show brand premia are sizable. They differ markedly across borders, in a way that does not correlate with transport costs, nor exchange rate movements. Taken together, the evidence is consistent firms exploiting market power through brand values to price discriminate across borders.
    Keywords: border effects; brand perception; international and regional price differences
    JEL: F15 F23 F41
    Date: 2009–10
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:7504&r=cul
  3. By: Ottaviano, Gianmarco Ireo Paolo; Prarolo, Giovanni
    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: cosmopolitan cities; cultural diaspora; cultural identity; knowledge creation
    JEL: F0 O4 R1
    Date: 2009–08
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:7432&r=cul
  4. By: Brügger, Beatrix; Lalive, Rafael; Zweimüller, Josef
    Abstract: This paper studies the role of culture in shaping unemployment outcomes. The empirical analysis is based on local comparisons across a language barrier in Switzerland. This Röstigraben seperates cultural groups, but neither labor markets nor political jurisdictions. Local contrasts across the language border identify the role of culture for unemployment. Our findings indicate that differences in culture explain differences in unemployment duration on the order of 20 %. Moreover, we find that horizontal transmission of culture is more important than vertical transmission of culture and that culture is about as important as strong changes to the benefit duration.
    Keywords: cultural transmission; culture; regional unemployment; unemployment duration
    JEL: J21 J64 Z10
    Date: 2009–08
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:7405&r=cul
  5. By: Maystre, Nicolas; Olivier, Jacques; Thoenig, Mathias; Verdier, Thierry
    Abstract: This paper makes three contributions to the growing literature on culture and economics. Using answers to the World Values Survey for a sample of 79 countries over the 1989-2004 period, we first provide evidence of cultural homogenization between countries. Second, we provide a model of product-based cultural change. Our main theoretical predictions are: (i) bilateral trade openness reduces bilateral cultural distance; (ii) the more differentiated the products, the more trade reduces cultural distance; (iii) trade openness has a lock-in effect on culture. Third, we test the model using an instrumental variable approach and including various time and country-pair fixed effects. We find that a one standard deviation increase in bilateral trade openness translates into a 43% standard deviation decrease in bilateral cultural distance.
    Keywords: culture; homogenization; persistence; trade
    JEL: F10 O10 Z1
    Date: 2009–08
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:7438&r=cul
  6. By: Giavazzi, Francesco; Schiantarelli, Fabio; Serafinelli, Michel
    Abstract: We study whether cultural attitudes towards gender, the young, and leisure are significant determinants of the evolution over time of the employment rates of women and of the young, and of hours worked in OECD countries. Beyond controlling for a larger menu of policies, institutions and structural characteristics of the economy than has been done so far, our analysis improves upon existing studies of the role of "culture" for labor market outcomes by dealing explicitly with the endogeneity of attitudes, policies and institutions, and by allowing for the persistent nature of labor market outcomes. When we do all this we find that culture still matters for women employment rates and for hours worked. However, policies and other institutional or structural characteristics are also important. Attitudes towards youth independence, however, do not appear to be important in explaining the employment rate of the young. In the case of women employment rates, the policy variable that is significant along with attitudes, is the OECD index of employment protection legislation. For hours worked the policy variables that play a role, along with attitudes, are the tax wedge and unemployment benefits. The quantitative impact of these policy variables is such that changes in policies have at least the potential to undo the effect of variations in cultural traits on labor market outcomes.
    Keywords: culture; gender; labor supply
    JEL: J16 J22 J23 Z1
    Date: 2009–11
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:7536&r=cul

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