nep-cul New Economics Papers
on Cultural Economics
Issue of 2010‒05‒02
two papers chosen by
Roberto Zanola
University of the Piemonte Orientale

  1. Cultural Identity, Mobility, and Decentralization By Christopher-Johannes Schild; Matthias Wrede
  2. What Do Ads Buy? Daily Coverage of Listed Companies on the Italian Press. By Marco Gambaro and Riccardo Puglisi

  1. By: Christopher-Johannes Schild (University of Marburg); Matthias Wrede (University of Marburg and CESifo)
    Abstract: Regional cultural identity increases trust and facilitates interaction between native citizens ("social capital"). At the same time, it also affects non-native's migration decisions and their utility as it excludes non-native mobile workers from economic interaction within the region. Policies to increase regional cultural identity thus exert an externality that is negative for a basic model where future local productivity is exogenous and random, leading to the result of oversupply of regional culture under decentralization. If migration affects productivity, the basic result of oversupply may be reversed, depending on production technology and the government's objective function. Some positive and normative conclusions for cultural policy are derived.
    Keywords: Decentralization, Labor Mobility, Cultural Policy, Cultural Identity, Social Capital
    JEL: H72 H73 J61 Z13
    Date: 2010
  2. By: Marco Gambaro and Riccardo Puglisi
    Abstract: We match data on the daily newspaper coverage of a sample of Italian listed companies with Nielsen data on the monthly amount of advertising that a given company has purchased on a given newspaper. Controlling for newspaper and company fixed effects, we show that newspaper coverage of a given company is positively related with the amount of ads purchased on that newspaper by that company. We also find that coverage of a company is higher the day after a press release, but especially so on newspapers where more ads are purchased. This result on press releases is robust to controlling for ownership links between newspapers and companies, and -more generally- controlling for time invariant features of each company-newspaper pair, i.e. for (company × newspaper) fixed effects.. Moreover, coverage is correlated with past day absolute return and trading volume, and this relationship appears to be steeper for those newspapers where more ads are purchased. .
    Keywords: Media Bias, Advertising, Press Releases, Stock Returns, Italian Press
    Date: 2010–01–29

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