nep-cul New Economics Papers
on Cultural Economics
Issue of 2014‒03‒08
two papers chosen by
Roberto Zanola
Universita' del Piemonte Orientale Amedeo Avogadro

  1. Investment Returns and Economic Fundamentals in International Art Markets By Renneboog, L.D.R.; Spaenjers, C.
  2. Culture and Household Decision Making: Balance of Power and Labor Supply Choices of US-born and Foreign-born Couples By Oreffice, Sonia

  1. By: Renneboog, L.D.R.; Spaenjers, C. (Tilburg University, Center for Economic Research)
    Abstract: Abstract: Works of art are neither easily tradable across borders, nor evaluated according to globally identical standards. We examine geographical segmentation and its effects on price formation and returns in the international art auction market. We find (i) a close connection between the country of sale and the type (e.g., nationality) of artworks sold; (ii) substantial international variation in average returns to art investments over the period 1971-2007; (iii) an impact of both global and local GDP growth and equity returns on national art market returns. Local fundamentals have not lost importance over time, despite increased economic integration (especially between the EU countries). Yet, country-specific economic factors matter less in determining the auction outcomes for high-end art. Our findings suggest the continuing importance of international demand differences in shaping the global art market, at least outside the top segment.
    Keywords: Economics of art;art markets;home bias;geographical market segmentation;art auctions;hedonic regression
    JEL: Z11 G15
    Date: 2014
  2. By: Oreffice, Sonia (University of Surrey)
    Abstract: This study investigates how spouses' cultural backgrounds mediate the role of intra-household bargaining in the labor supply decisions of foreign-born and US-born couples, in a collective-household framework. Using data from the 2000 US Census, I show that the hours worked by US-born couples, and by those foreign-born coming from countries with gender roles similar to the US, are significantly related to common bargaining power forces such as differences between spouses in age and non-labor income, controlling for both spouses' demographic and socioeconomic characteristics. Households whose culture of origin supports strict and unequal gender roles do not exhibit any association of these power factors with their labor supply decisions. This cultural asymmetry suggests that spousal attributes are assessed differently across couples within the US, and that how spouses make use of their outside opportunities and economic and institutional environment may depend on their ethnicities.
    Keywords: culture, gender roles, household bargaining power, labor supply
    JEL: D1 J15 J22
    Date: 2014–02

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