nep-cul New Economics Papers
on Cultural Economics
Issue of 2010‒04‒17
seven papers chosen by
Roberto Zanola
University of the Piemonte Orientale

  1. Copying, superstars and artistic creation By Alcalá, Francisco; Gonzalez-Maestre, Miguel
  2. Music Scenes to Music Clusters - the economic geography of music in the U.S., 1970-2000 By Florida, Richard; Mellander, Charlotta; Stolarick, Kevin
  3. The ‘Right’ Price for Art Collectibles. A Quantile Hedonic Regression Investigation of Picasso Paintings By A.E. Scorcu; R. Zanola
  4. Newspaper Differentiation and Investments in Journalism: The Role of Tax Policy By Kind, Hans Jarle; Schjelderup, Guttorm; Stähler, Frank
  5. Blessing or Curse? Appreciation, Amenities and Resistance around the Berlin "Mediaspree" By Gabriel Ahlfeldt
  6. Stars War in French Gastronomy: Prestige of Restaurants and Chefs’ Careers By Gergaud, Olivier; Smeets, Valérie; Warzynski, Frédéric
  7. How novel is social capital: Three cases from the British history that reflect social capital By Akcomak, Semih; Stoneman, Paul

  1. By: Alcalá, Francisco; Gonzalez-Maestre, Miguel (Departamentos y Servicios::Departamentos de la UMU::Fundamentos del Análisis Económico)
    Abstract: We provide a new perspective on the impact of unauthorized copying and copy levies on artistic creation. Our analysis emphasizes three important aspects of artistic markets: the predominance of superstars, the dynamics of talent sorting, and the importance of promotion expenditures. In the short run, piracy reduces superstars’ earnings and market share, and increases the number of rich and young artists. From a dynamic perspective, piracy may help more young artists start their careers, thereby increasing the number of highly talented artists in the long run. The long run impact on artistic creation of levies on copy equipment may crucially depend on whether their yields primarily accrue to superstars or are allocated to help young artists.
    Keywords: Artistic creation, Superstars, Private copy, Piracy, Levies
    JEL: D12 R23
    Date: 2009–09
  2. By: Florida, Richard (Martin Prosperity Institute); Mellander, Charlotta (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Stolarick, Kevin (Martin Prosperity Institute)
    Abstract: Where do musicians locate, and why do creative industries such as music continue to cluster? This paper analyzes the economic geography of musicians and the recording industry in the U.S. from 1970 to 2000 to shed light on the locational dynamics of music and creative industries more broadly. We examine the role of scale and scope economies in shaping the clustering and concentration of musicians and music industry firms. We argue that these two forces are bringing about a transformation in the geography of both musicians and music industry firms, evidenced in a shift away from regionally clustered, genrespecific music scenes, such as Memphis or Detroit, toward larger regional centers like New York City and Los Angeles which offer large markets for music employment and concentration of other artistic and cultural endeavors which increase demand for musicians. We use population and income to probe for scale effects, and concentrations of other creative and artistic industries to test for scope effects, while including a range of control variables in our analysis. We use lagged variables to determine if certain places are consistently more successful at fostering concentations of musicians and the music industry and test for path dependency. We find some role for scale and scope effects and that both musicians and the music industry are concentrating in a relatively small number of large regional centers.
    Keywords: musicians; recording industry; agglomerations
    JEL: R11 R12 Z11
    Date: 2010–02–11
  3. By: A.E. Scorcu (University of Bologna, Department of Economics, Italy and Rimini Center for Economic Analysis (RCEA), Italy); R. Zanola (University of Eastern Piedmont, Department of Public Policy and Public Choice, Italy and Rimini Center for Economic Analysis (RCEA), Italy)
    Abstract: Different art objects are likely to be priced by means of different systems of hedonic characteristics; more precisely, different evaluation procedures for high and low price items are often postulated. However, the empirical evidence on this point is scant. The main purpose of this paper is to fill this gap by using the quantile hedonic regression approach. The empirical evidence, based on a data set of 716 Picasso paintings sold at auction worldwide, highlights the critical role of the price classes in determining the evaluation criteria of art items.
    Keywords: hedonic price; auction; quantile regression; painting; Picasso
    JEL: D49
    Date: 2010–01
  4. By: Kind, Hans Jarle (Dept. of Economics, Norwegian School of Economics and Business Administration); Schjelderup, Guttorm (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration); Stähler, Frank (Dept. of Economics and Business Administration , University of Würzburg)
    Abstract: Newspapers are considered to be important providers of information, culture and language, and are taxed at a reduced VAT rate in most countries. This paper shows that such a policy may affect newspaper di¤erentiation and lead to greater media bias. We further show that a reduced-rate VAT scheme may lead to higher newspaper prices and less investment in journalism. These results are obtained by explicitly taking into account the fact that newspapers operate in two sided markets, where they raise revenue both from readers and advertisers.
    Keywords: Two-sided markets; ad-valorem taxes
    JEL: D40 D43 H21 H22 L13
    Date: 2009–11–11
  5. By: Gabriel Ahlfeldt (Department of Geography and Environment, London School of Economics (LSE), University of London)
    Abstract: This article investigates the 2008 referendum held in opposition against the "Mediaspree", a major urban development project in Berlin that has been perceived as a threat of displacement of local residents and culture. Using precinct level data we find a high degree of localized resistance around the project area, conditional on socio-demographic characteristics. Comparison to local appreciation rates shows that in an environment of very low owner occupancy public (re)development projects are opposed the more residents associate an increase in area valuation. This effects is, however, not strong enough to explain the localized resistance. Considering a micro-level data set on music nodes, our results suggest that resistance is rather attributable to a feared loss of specific cultural amenities and neighborhood character.
    Keywords: Cultural Amenities, Urban Development, Displacement, Hedonic Modeling, Mediaspree
    JEL: Z10 R20
    Date: 2010
  6. By: Gergaud, Olivier (University of Reims); Smeets, Valérie (Department of Economics, Aarhus School of Business); Warzynski, Frédéric (Department of Economics, Aarhus School of Business)
    Abstract: In this paper, we analyze the careers from a sample of more than 1,000 top French chefs over more than twenty years and link it to the success or reputation of the restaurants where they have worked. This allows us to test what are the determinants of success but also to investigate the dynamics of performance and reputation, stressing the importance of the quality of apprenticeships, mentoring and entrepreneurship spirit. We find that the prestige of the restaurant where individuals work is on average declining along the career, and that the quality of apprenticeship is strongly related to the future success as chef. We also find that prices of restaurants with higher reputation are more sensitive to bad signals.
    Keywords: No; keywords
    JEL: J24
    Date: 2010–01–01
  7. By: Akcomak, Semih (UNU-MERIT, Maastricht University, and CPB (Netherlands Bureau for Economic Policy Analysis)); Stoneman, Paul (Department of Sociology, University of Essex)
    Abstract: Social capital increases efficiency by reducing transaction costs, creating new forms of information exchange and by inducing change in individual attitudes. How Royal Society of London, the Media and the Private Prosecution Societies functioned in the 17th and 18th century Britain display astonishing similarities with these three elements that have been identified by contemporary scholars. By and large current literature treats social capital as novel phenomenon, as "manna from heaven". We argue that social capital is no such magical discovery and it could emerge whenever and wherever social networks exist.
    Keywords: Social capital, British History, Voluntary associations
    JEL: A12 A13 N33 Z13
    Date: 2010

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