nep-cul New Economics Papers
on Cultural Economics
Issue of 2014‒06‒02
four papers chosen by
Roberto Zanola
Universita' del Piemonte Orientale Amedeo Avogadro

  1. The Media and the Diffusion of Information in Financial Markets: Evidence from Newspaper Strikes By Peress, Joël
  2. “Selling Out” and the Impact of Music Piracy on Artist Entry By Joshua S. Gans
  3. Natural and Cultural Heritage in the European Islands: an Interdisciplinary Approach By Edoardo Lorenzetti; Mario De Marchiì
  4. Culture, Beliefs and Economic Performance By Rafael Di Tella; Robert MacCulloch

  1. By: Peress, Joël
    Abstract: The media are increasingly recognized as key players in financial markets. I investigate their causal impact on trading and price formation by examining national newspaper strikes in several countries. Trading volume falls 12% on strike days. The dispersion of stock returns and their intraday volatility are reduced by 7%, while aggregate returns are unaffected. Moreover, an analysis of return predictability indicates that newspapers propagate news from the previous day. These findings demonstrate that the media contribute to the efficiency of the stock market by improving the dissemination of information among investors and its incorporation into stock prices.
    Keywords: informational diffusion; market efficiency; media
    JEL: G14
    Date: 2013–09
  2. By: Joshua S. Gans
    Abstract: There is a puzzle arising from empirical analyses of the impact of music piracy that this has caused declines in music revenue without a consequential decline, and perhaps even an increase, in the entry of artists and the supply of high quality music. There have been numerous explanations posited and this paper adds a novel one: that artists are time inconsistent and hence, tend to underweight fame over fortune when making future choices; i.e., the degree to which they will ‘sell out.’ Regardless of whether selling out is anticipated or not, the puzzle is resolved. When selling out is not anticipated, future expectations of piracy are not a concern as these impact on monetary awards that are not driving entry. When selling out is anticipated, piracy actually constrains the degree to which artists sell out, and assured of that, raises entry returns. Implications and the role of publisher contracts are also explored.
    JEL: D03 K11 L82
    Date: 2014–05
  3. By: Edoardo Lorenzetti (Ceris - Institute for Economic Research on Firms and Growth,Rome,Italy); Mario De Marchiì (Ceris - Institute for Economic Research on Firms and Growth,Rome,Italy)
    Abstract: The designing of a new knowledge model – to be tested on particularly significant cultural areas such as Islands and on their historic urban spaces, taking into account the tangible and intangible elements of their historical cultural heritage – is a concrete opportunity to resume a debate aimed at identifying a scientifically correct and interdisciplinary methodology of analysis to attain thorough knowledge of the various factors that contribute to the definition of historical, architectural, anthropological, and landscape-based features of towns and historic centres, particularly those of islands. This knowledge process should strive to overcome an approach, focused mostly on the protection of individual architectural features of great historical-artistic importance. This perspective concentrates on monumental structures and major architectural works rather than on a much wider heritage, made up of artefacts displaying various levels of quality, which take on specific scientific relevance because of their mutual functional and structural relations and the historical, social, anthropological, and landscape context which they express. However, following such a method, the various disciplines involved in the research activity can assess their mutual ability to relate to one another when they deal with a wide subject, which actually includes several areas of common interest. A methodologically correct research view must provide a knowledge framework that is both detailed and comprehensive in describing the mutual relations among the features of historic centres as well as how the latter are linked to the surrounding environment and landscape. Last but not least, it can be clearly seen that such an operation would pave the way for specific sector-based interventions with great economic potential for the areas involved; even if adequate tools of such economic analysis are still lacking.
    JEL: H41
    Date: 2013–06
  4. By: Rafael Di Tella (Harvard Business School); Robert MacCulloch (University of Auckland)
    Abstract: Beliefs are one component of culture. Data from the World Values Survey is available on a subset of beliefs concerning (broadly) meritocracy and poverty that appear relevant for economics. We document how they vary as well as their distribution across countries. We then correlate these measures of beliefs with economic growth and compare them with institutional and geographical determinants of income. A strong negative relationship is found between leftist economic beliefs and growth but little evidence is found of a relationship with respect to non-economic beliefs. Finally, we briefly discuss some causal effects on beliefs. The evidence suggests that higher country risk and more dependence on natural resources shifts nations to a more leftist set of economic beliefs. Overall the evidence supports the view that cultural specificities may explain why certain institutions cannot be transplanted between nations with different cultural histories and underlines the limit to policy activism.
    Keywords: Beliefs, institutions, causality
    JEL: P16 E62
    Date: 2014–05

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