nep-cul New Economics Papers
on Cultural Economics
Issue of 2011‒07‒02
five papers chosen by
Roberto Zanola
University Amedeo Avogadro

  1. Measuring the Economic and Cultural Values of Historic Heritage Places By Throsby, David; Deodhar, Vinita; Hanna, Bronwyn; Jewell, Bronwyn; OâConnor, Zena; Zednik, Anita
  2. Discoveries of fakes: their impact on the art market By Fabien Bocart; Kim Oosterlinck
  3. Corruption scandals, press reporting, and accountability. Evidence from Spanish mayors. By Elena Costas; Albert Sole-Olle; Pilar Sorribas-Navarro
  4. Does Competition Kill? The Case of Classical Composers By Karol Jan BOROWIECKI; Georgios KAVETSOS
  5. Social Networks and Parental Behavior in the Intergenerational Transmission of Religion By Patacchini, Eleonora; Zenou, Yves

  1. By: Throsby, David; Deodhar, Vinita; Hanna, Bronwyn; Jewell, Bronwyn; OâConnor, Zena; Zednik, Anita
    Abstract: This research project on the valuation of cultural heritage is developing a methodology for a quantitative valuation study of the use and non-use values of historic heritage places. The methodology developed in this project will provide a template for subsequent empirical applications to generate data of use in the formulation of heritage policies and programs. The initial stages in reaching this larger objective have involved determining how historic heritage places are to be categorised for measurement, establishing the process by which heritage attributes will be determined for valuation, and developing and trialling an effective measurement framework. The principal techniques being developed for valuation assessment in the project are derived from choice-modelling (CM) and contingent-valuation methods (CVM). A particular focus of the project is on the systematic integration of cultural and economic value assessments within a consistent theoretical framework, reflecting the need for an economic perspective on the significance criteria currently in use in heritage policy in Australia.
    Keywords: Community/Rural/Urban Development, Environmental Economics and Policy,
    Date: 2010–11
  2. By: Fabien Bocart; Kim Oosterlinck
    Abstract: Despite the dramatic surge in the production of fakes, their impact on the art market remains unexplored. This paper investigates the overall impact that the discovery of a fake painting, for example a fake Gauguin, has on the market for paintings from the same artist (Gauguin’s artworks). Before the fake’s discovery, artworks are less likely to be sold through Sotheby’s or Christie’s suggesting that sellers may wish to avoid their extensive scrutiny. However, when fakes have been discovered sellers rely more often on these auction houses, probably because they are viewed as providing a credible form of certification. Surprisingly, fake discoveries have almost no impact on the probability to sell an artwork. Prices only react negatively with a lag, suggesting that sellers try to postpone their sales as long as possible. Eventually, close to a year after fakes have been made public, prices increase indicating that buyers view the market as purged.
    Date: 2011–06
  3. By: Elena Costas; Albert Sole-Olle; Pilar Sorribas-Navarro (Universitat de Barcelona)
    Abstract: We analyse the effects of local corruption on electoral outcomes with Spanish data. Based upon press reports published between 1996 and 2009, we are able to construct a novel database on corruption scandals and news related to bribe-taking in exchange for amendments to land use plans. Our data show that local corruption scandals first emerged during the 1999-2003 term, but that they peaked just before the 2007 elections. We estimate an equation for the incumbents vote share at this electoral contest and find the average vote loss after a corruption scandal to be around 4%, and the effect to be greater for cases receiving wide newspaper coverage (up to 9%). The effects found for the 2003 elections are much lower. When we consider cases in which the incumbent has been charged with corruption and press coverage has been extensive the vote loss can rise to 12%. However, press reports have a negative impact on the vote even when no judicial charges have been brought.
    Keywords: voting, corruption, accountability
    JEL: D72 P16
    Date: 2011
  4. By: Karol Jan BOROWIECKI (Department of Economics, Trinity College Dublin); Georgios KAVETSOS (Cass Business School, City University, London)
    Abstract: We investigate the impact of peer competition on longevity using a unique historical data set of classical composers. We measure the geographic concentration of peers by the number of composers located in the same area and the time spent in one of the main geographic clusters for classical music. Using instrumental variables, we find a significant negative effect of geographic concentration. An additional composer based in the same location decreases longevity by 2.3 years, on average. Besides the widely known economic benefits associated with competition, these findings suggest that significant negative welfare externalities exist as well.
    Keywords: geographic concentration, well-being, mortality, culture
    JEL: D12 I12 N90 R11 Z19
    Date: 2011–06
  5. By: Patacchini, Eleonora (Sapienza University of Rome); Zenou, Yves (Stockholm University)
    Abstract: We analyze the intergenerational transmission of the strength of religion focusing on the interplay between family and peer effects. We develop a theoretical model suggesting that both peer quality and parental effort are of importance for the religious behavior of the children. We then bring the model to the data by using a very detailed dataset of adolescent friendship networks in the United States. We find that, for religious parents, the higher is the fraction of religious peers, the more parents put effort in transmitting their religiosity, indicating cultural complementarity. For non-religious parents, we obtain the reverse, indicating cultural substitutability. Concerning the success in transmitting the religious trait, we find that, for religious parents, the fraction of religious peers has only an indirect effect (through parental effort) while, for non-religious parents, there is a lower indirect effect and a statistically significant and sizeable direct effect of peers on the transmission of the non-religious trait.
    Keywords: religion, cultural transmission, peer effects, network fixed effects
    JEL: A14 D85 Z12
    Date: 2011–06

This nep-cul issue is ©2011 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.
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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.