nep-cul 2013-09-28 papers

on Cultural Economics

Issue of 2013‒09‒28
two papers chosen by
Roberto Zanola
University Amedeo Avogadro

Agglomeration Economies in Classical Music

By:	Karol J. Borowiecki (Department of Business and Economics, University of Southern Denmark, Odense, Denmark)
Abstract:	This study investigates agglomeration effects for classical music production in a wide range of cities for a global sample of composers born between 1750 and 1899. Theory suggests a trade-off between agglomeration economies (peer effects) and diseconomies (peer crowding). I test this hypothesis using historical data on composers and employ a unique instrumental variable - a measure of birth centrality, calculated as the average distance between a composer´s birthplace and the birthplace of his peers. I find a strong causal impact of peer group size on the number of important compositions written in a given year. Consistent with theory, the productivity gain eventually decreases and is characterized by an inverted U-shaped relationship. These results are robust to a large series of tests, including checks for quality of peers, city characteristics, various measures of composers´ productivity, and across different estimations in which also time-varying birth centrality measures are used as instrumental variables.
Keywords:	agglomeration economies, density effects, peer effects, productivity, urban history, cities, composer
JEL:	D24 J24 N90 R12 Z11
Date:	2013–09
URL:	http://d.repec.org/n?u=RePEc:cue:wpaper:awp-02-2013&r=cul

Value and Culture

By:	Allan, Corey (Motu Economic and Public Policy Research); Grimes, Arthur (Motu Economic and Public Policy Research); Kerr, Suzi (Motu Economic and Public Policy Research)
Abstract:	This paper seeks to clarify the understanding of value in the cultural context, using economics concepts. We develop an economic framework for thinking about value in the cultural context and discuss how well various valuation techniques are able to account for such values. We also discuss why actual outcomes for the production of cultural and heritage services may differ from what would be considered ‘optimal’ in the economic context. The aim is to outline a framework which can assist policy makers in the cultural sector to intervene more cost-effectively and be more conscious of trade-offs amongst different cultural values.
Keywords:	value; culture; cultural policy; non-market valuation
JEL:	A11 A13 Z10 Z18
Date:	2013–09
URL:	http://d.repec.org/n?u=RePEc:mtu:wpaper:13_09&r=cul

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