nep-cul New Economics Papers
on Cultural Economics
Issue of 2012‒04‒23
four papers chosen by
Roberto Zanola
University Amedeo Avogadro

  1. Are There Bubbles in the Art Market? The Detection of Bubbles when Fair Value is Unobservable By Nandini Srivastava; Stephen Satchell
  2. Audio-visual Services: International Trade and Cultural Policy By Doyle, Gillian
  3. The Advertiser is Mentioned Twice. Media Bias in Belgian Newspapers By De Smet, Dries; Vanormelingen, Stijn
  4. Audiovisual Services in Korea: Market Development and Policies By Song, Yeongkwan

  1. By: Nandini Srivastava (Christ's College, University of Cambridge); Stephen Satchell (Department of Economics, Mathematics & Statistics, Birkbeck; University of Sydney)
    Abstract: The purpose of this paper is to look for bubbles in the Art Market using a structure based on steady state results for TAR models and appropriate definitions of bubbles recently put forward by Knight, Satchell and Srivastava (2011). The usual method for investigating bubbles is to measure prices as deviations from fair value. We assess whether it is meaningful to define a fair value of art and conclude that it is very challenging empirically to implement any definition. We then treat fair value as zero in one instance and unobservable in the other case and in both cases provide evidence of bubbles in the art market.
    Keywords: Bubbles, Asset prices, Steady state, Non-linear time series, TAR models, Art markets
    JEL: G12
    Date: 2012–04
  2. By: Doyle, Gillian (Asian Development Bank Institute)
    Abstract: The audiovisual sector is a significant component of the economy in terms of wealth creation and employment and audiovisual industries also play an important cultural role. This study reviews the main forces driving patterns of trade in audiovisual (mainly television and film) and identifies key issues that may potentially impact on trade liberalization and open markets. It analyzes economic aspects of the audiovisual sector and how these influence patterns of international trade. The report also examines the regulatory environment, including frameworks for transnational coordination of copyright. Cultural issues that may affect trade in audiovisual goods and services are considered. The study concludes with reflections on how open markets can be reconciled with cultural objectives which are an intrinsic aspect of the audiovisual sector.
    Keywords: audiovisual sector; audio-visual services; international trade; cultural policy; television and film
    JEL: F20
    Date: 2012–04–17
  3. By: De Smet, Dries (Center of Economic Studies and Licos Centre for Institutions and Economic Performance KULeuven); Vanormelingen, Stijn (Hogeschool-Universiteit Brussel (HUB))
    Abstract: Do newspapers write more about their advertisers? We try to answer this question on two levels. In our theoretical model, we show that the answer is yes, if readers do not mind bias too much and if bias is relatively effective for advertisers. In an empirical study, we find that advertisers in Belgian Dutch-language newspapers receive a significantly higher coverage.
    Keywords: advertising, advertising bias, commercial bias, media bias, newspapers
    Date: 2012–01
  4. By: Song, Yeongkwan (Asian Development Bank Institute)
    Abstract: This paper reviews economic development and the regulatory environment of audiovisual services in the Republic of Korea (hereafter, Korea). The paper specifically examines motion pictures and broadcasting, and discusses what drives or hinders the sector’s trade potential, which depends on whether Korean audiovisual services providers create high quality content that can be shared locally and/or universally. The most important prerequisite for high quality content is the generation of creative ideas, which would be hindered by strong government censorship and controls. The restrictive Korean broadcasting sector should learn from the success of the Korean film industry in this regard.
    Keywords: audiovisual services; republic of korea; motion pictures; broadcasting
    JEL: O14 O24 O53
    Date: 2012–04–16

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