nep-cul New Economics Papers
on Cultural Economics
Issue of 2011‒08‒22
three papers chosen by
Roberto Zanola
University Amedeo Avogadro

  1. Retransformation bias in the adjacent art price index By Andrew M. Jones; Roberto Zanola
  2. How developing countries can benefit from intellectual property: the role of collective marks in tourism By Ghafele, Roya
  3. Tastes, castes, and culture : the influence of society on preferences By Fehr, Ernst; Hoff, Karla

  1. By: Andrew M. Jones (Department of Economics and Related Studies, University of York, UK); Roberto Zanola (Department of Public Policy and Public Choice, University of Eastern Piedmont, Italy)
    Abstract: The literature on hedonic price indices, such as the adjacent art price index, often uses a logarithmic transformation of the price data to deal with the non-normality. However, this creates the problem of retransforming the predictions back to an economically meaningful scale. This paper investigates the impact of dealing with the retransformation problem for estimates of art market returns. The empirical results show how failure to allow for retransformation may result in a biased price index
    Keywords: Retransformation; heteroskedasticity; Picasso; hedonic prices
    JEL: Z10
    Date: 2011–07
  2. By: Ghafele, Roya
    Abstract: While tourism has been praised by a variety of international organizations as a means to promote the local economy in developing countries, tourism led growth has never been seen to be supported by a developing countries’ intellectual property regimes. Intellectual property rights, particularly if owned collectively, accelerate cluster creation, an organizational form particularly beneficial for tourism. The positive externalities associated with clusters can be reinforced through the assignment of collective marks. A region’s intangible assets, its social cohesion, can be fostered through the introduction of collective marks, since it is an intellectual property rights that can be owned collectively by a given community. This paper is one of the first of its kind to flesh out a more differentiated economic value proposition of collective marks, while at the same time illustrating the economic opportunities that the intellectual property system provides to developing countries’ economies.
    Keywords: Economies of agglomeration; externalities of cluster creation; economic value proposition of collective marks
    JEL: O34 F59 Z10
    Date: 2011–03–08
  3. By: Fehr, Ernst; Hoff, Karla
    Abstract: Economists have traditionally treated preferences as exogenously given. Preferences are assumed to be influenced by neither beliefs nor the constraints people face. As a consequence, changes in behaviour are explained exclusively in terms of changes in the set of feasible alternatives. Here the authors argue that the opposition to explaining behavioural changes in terms of preference changes is ill-founded, that the psychological properties of preferences render them susceptible to direct social influences, and that the impact of"society"on preferences is likely to have important economic and social consequences.
    Keywords: Biodiversity,Labor Policies,Economic Theory&Research,Cultural Policy,Gender and Social Development
    Date: 2011–08–01

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