nep-cul New Economics Papers
on Cultural Economics
Issue of 2015‒04‒19
six papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Fiscal and Economic Aspects of Book Consumption in the European Union By Karol J. Borowiecki; Trilce Navarrete
  2. Sorting based on Urban Heritage and Income: Evidence from the Amsterdam Metropolitan Area By Mark van Duijn; Jan Rouwendal
  3. Mozart or Pelé? The effects of teenagers’ participation in music and sports By Cabane, Charlotte; Hille, Adrian; Lechner, Michael
  4. Application of the war of attrition game to the analysis of intellectual property disputes By Manuel G. Ch\'avez-Angeles; Patricia S. S\'anchez-Medina
  5. Do pirates play fair? Ethical judgment of unauthorized sports broadcasts By Michał Krawczyk; Joanna Tyrowicz; Anna Kukla-Gryz; Wojciech Hardy
  6. In fatal pursuit of immortal fame: Peer competition and early mortality of music composers By Borowiecki, Karol Jan; Kavetsos, Georgios

  1. By: Karol J. Borowiecki (Department of Business and Economics, University of Southern Denmark, Odense,Denmark); Trilce Navarrete (Department of Business and Economics, University of Southern Denmark, Odense,Denmark)
    Abstract: One of the available and yet underappreciated tools in cultural policy at the national level is the reduction of VAT rates for cultural goods and services. We document the standard and reduced VAT rates in EU-28 countries in the period from 1993 to 2013 and explore the underlying determinants. We further introduce a simple theoretical framework to explain how reduced fiscal rates are expected to decrease prices and increase quantities of the consumed cultural goods and services. We then estimate quantitatively that a decrease in the VAT rate for books by one percentage point is associated with an economically significant drop in the price by 2.6 percent. Finally, we show the positive effect of a fiscal rate reduction on the book expenditure of well-off households, where a one percentage point decrease in the VAT rate for books leads to an increase in expenditure by 2.7 percent.
    Keywords: Cultural consumption, Book markets, Cultural policy, Value added tax, fiscal policy
    JEL: H21 H31 I30 K34 Z11
    Date: 2015–04
  2. By: Mark van Duijn (VU University Amsterdam, University of Groningen, and Amsterdam School of Real Estate, the Netherlands); Jan Rouwendal (VU University Amsterdam, and Amsterdam School of Real Estate, the Netherlands)
    Abstract: Urban heritage is often concentrated in conservation areas with a protected status. Previous research argues that urban heritage attracts especially higher educated households who are likely to have higher incomes. The presence of these households may have a further impact on the attractiveness of the neighborhoods concerned, for instance through endogenous amenities like better shops or schools. If this is the case for high income households, conservation areas will have a further impact on the area’s attractiveness through the demographic composition of the residential area. In this paper we investigate the interaction between the preference for urban heritage – as an exogenous amenity – and the preference for areas with a high concentration of high income households – as an endogenous amenity. We develop a logit-based sorting model in which different incom e groups interact and estimate it for the Amsterdam metropolitan area. Results show that all employed households highly value conservation areas and prefer to live in areas with a high concentration of high income households. We investigate the impact of urban heritage on house prices and welfare through counterfactual simulations. The disappearance of urban heritage would result in a substantially more suburbanized location pattern of the high income households in the Amsterdam metropolitan area, and to lower welfare for all income groups.
    Keywords: Location choice; urban heritage; sorting models; discrete choice; heterogeneous household preferences; welfare analysis
    JEL: R2 J1 Z1
    Date: 2015–03–02
  3. By: Cabane, Charlotte; Hille, Adrian; Lechner, Michael
    Abstract: Using data from the German Socio-Economic Panel, this paper analyses the effects of spending part of adolescents’ leisure time on playing music or doing sports, or both. We find that while playing music fosters educational outcomes compared to doing sports, particularly so for girls and children from more highly educated families, doing sports improves subjective health. For educational outcomes, doing both activities appeared to be most successful. The results are subjected to an extensive robustness analysis including instru-mental variable estimation and a formal sensitivity analysis of the identifying assumptions, which does not reveal any serious problems.
    Keywords: Child development, leisure time activities, matching estimation, SOEP
    JEL: C14 D12 I21 J24
    Date: 2015–04
  4. By: Manuel G. Ch\'avez-Angeles; Patricia S. S\'anchez-Medina
    Abstract: In many developing countries intellectual property infringement and the commerce of pirate goods is an entrepreneurial activity. Digital piracy is very often the only media for having access to music, cinema, books and software. At the same time, bio-prospecting and infringement of indigenous knowledge rights by international consortiums is usual in places with high biodiversity. In these arenas transnational actors interact with local communities. Accusations of piracy often go both ways. This article analyzes the case of southeast Mexico. Using a war of attrition game theory model it explains different situations of intellectual property rights piracy and protection. It analyzes different levels of interaction and institutional settings from the global to the very local. The article proposes free IP zones as a solution of IP disputes. The formation of technological local clusters through Free Intellectual Property Zones (FIPZ) would allow firms to copy and share de facto public domain content for developing new products inside the FIPZ. Enforcement of intellectual property could be pursuit outside of the FIPZ. FIPZ are envisioned as a new type of a sui generis intellectual property regime.
    Date: 2015–04
  5. By: Michał Krawczyk (Faculty of Economic Sciences, University of Warsaw); Joanna Tyrowicz (Faculty of Economic Sciences, University of Warsaw; National Bank of Poland); Anna Kukla-Gryz (Faculty of Economic Sciences, University of Warsaw); Wojciech Hardy (Faculty of Economic Sciences, University of Warsaw)
    Abstract: Ethical norms on the Internet are believed to be more permissive than in the ‘real’ world and this belief often serves as an explanation for the prevalence of the so-called digital “piracy”. In this study we provide evidence from a vignette experiment that contradicts this claim. Analyzing the case of sports broadcast, we compare explicitly the ethical judgment of legal and illegal sharing in the offline and online context. We find that the norms concerning legality, availability of alternatives and deriving material benefits from sharing content do not differ substantially between the virtual and real worlds. We also test explicitly for the role of legal awareness and find that emphasizing what is prohibited (copyright infringement) is less effective than focusing on what is permitted (fair use) in reducing the disparity between legal and ethical norms.
    Keywords: Internet piracy, file sharing, fair use, legal awareness, copynorms, vignette experiment
    JEL: K42 O34 L82
    Date: 2015
  6. By: Borowiecki, Karol Jan (Department of Business and Economics); Kavetsos, Georgios (Department of Social Policy)
    Abstract: We investigate the impact of peer competition on longevity using a unique historical data set of 144 prominent music composers born in the 19th century. We approximate for peer competition measuring (a) the number or (b) the share of composers located in the same area and time, (c) the time spent in one of the main cities for classical music, and (d) the quality of fellow composers. These measures imply that composers’ longevity is reduced, if they located in agglomerations with a larger group of peers or of a higher quality. The point estimates imply that, all else equal, a one percent increase in the number of composers reduces composer longevity by about 7.2 weeks. The utilized concentration measures are stronger than the personal factors included in the analysis in determining longevity, implying that individuals’ backgrounds have minimal impact on mitigating the effect of experienced peer pressure. The negative externality of peer competition is experienced also in all cities, fairly independent of their size. Our results are reaffirmed using an instrumental variable approach and are consistent throughout a range of robustness tests. Besides the widely known economic benefits associated with competition, these findings suggest that significant negative welfare externalities exist as well.
    Keywords: Geographic concentration; well-being; mortality; urban history; culture
    JEL: D12 I12 N90 R11 Z19
    Date: 2015–04–07

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