nep-cul New Economics Papers
on Cultural Economics
Issue of 2015‒05‒09
six papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Rational addiction and cultural goods: the case of the Italian theatregoer By Concetta Castiglione; Davide Infante
  2. Dance Participation and Attendance in Denmark By Karol J. Borowiecki; Catarina Marvao
  3. Does Related variety matter for Creative Industries? By Luciana Lazzeretti; Niccolò Innocenti; Francesco Capone
  4. Creativity and economic growth: theory, measures, and potentials for morocco By Nakamura, Leonard I.
  5. Humor in advertising: a review on use of television radio and print advertising media By S, venkatesh; N, senthilkumar
  6. Radio and the rise of the Nazis in prewar Germany By Adena, Maja; Enikolopov, Ruben; Petrova, Maria; Santarosa, Veronica; Zhuravskaya, Ekaterina

  1. By: Concetta Castiglione (Department of Statistical Sciences, University of Bologna, Bologna, Italy); Davide Infante (Department of Economics, Statistics and Finance, University of Calabria)
    Abstract: This paper tests whether demand for theatre in Italy is consistent with the model of rational addiction presented in Becker and Murphy (1988). Data from a novel 34-¬year panel on regional annual theatre attendance are used to estimate market demand. Four models are applied to investigate the demand function, and all of these also include per capita income and other control variables as regressors. The first two models are estimated to check whether theatregoers are myopically addicted to theatre. The results suggest that the theatre is an addictive good because past consumption (and prices) significantly raises the marginal utility of current consumption. The third model tests the rational addiction hypothesis, which assumes that future attendance also influences current attendance, whilst past and future prices influences current attendance only indirectly through their impact on past and future attendance. However, our most highly specified model, introducing past and future prices, demonstrates that Italian theatregoers are not myopic but fully rational as outlined in Becker and Murphy (1988). The results demonstrate that the rational addiction hypothesis is applicable not only to “harmful†addictions such as alcohol, cigarettes, and drug consumption, but also to “beneficial†addictions, such as theatre attendance.
    Keywords: Cultural Theatre demand, rational addiction, panel data, Italy
    JEL: C23 D12 Z10
    Date: 2015–05
  2. By: Karol J. Borowiecki (Department of Business and Economics, University of Southern Denmark, Odense,Denmark); Catarina Marvao (SITE-Stockholm School of Economics, Stockholm, Sweden)
    Abstract: Dancing may be one of the most competitive professions availabl career-wise. The lack of job opportunities and the competitiveness, the inherent expense in costumes and training and the high risk of injuries mean that only few dancers are able to make it their profession. However, dancing is an activity that comes with positive externalities, as various socioeconomic benefits are experienced by those who practice dance non-professionally. Despite the importance of dancing, very little is known with respect to the profiles of dancers. This paper, by availing of an information database on cultural preferences and habits in Denmark for 2004, illustrates the profiles of dancers and dance audiences and so deepens the current knowledge on the functioning of the dance market. We show that there exists a very strong positive correlation between cultural participation and the well-being of a society. These links are carefully described in the paper.
    Keywords: Cultural consumption, Book markets, Cultural policy, Value added tax, fiscal policy
    JEL: H21 H31 I30 K34 Z11
    Date: 2015–04
  3. By: Luciana Lazzeretti; Niccolò Innocenti; Francesco Capone
    Abstract: Creative industries have become a priority sector for economic development and to exit from the actual economic crisis. Nevertheless, creative industries includes heterogeneous industries and it is not enough investigated how variety and diversity work to favour knowledge spillovers and cross-fertilization processes. The Related Variety approach aims to identify key factors of economic growth considering the need for a local system to have a certain degree of cognitive proximity, so as to promote innovation and development in the area. This work contributes to both these strands of research and it attempts to investigate the role and importance of related and unrelated variety within creative industries for local economic growth. The study focuses on employment growth at provincial level during a long run period 1991-2011 in Italy. Results suggests that the employment growth in creative industries depends on their variety and, even more, on their related variety, which make them able to promote interactions among industries and foster creativity.
    Keywords: Creative industries, creativity, related variety, growth
    JEL: R11 O10
    Date: 2015–05
  4. By: Nakamura, Leonard I. (Federal Reserve Bank of Philadelphia)
    Abstract: The current era of globalization is dominated by the rise of investments in intangible capital rather than tangible capital — the ascendance of creativity over plant and equipment. This brief paper is motivated by the possibility that emerging market economies such as Morocco might take greater advantage of new tools and policies designed for this new era. To begin, I discuss the transformation of the global economy and the consequences of the transformed global economy for economic thinking and measurement. I refer to both old and new literature on the measurement of intangible investment and capital. Then, I discuss the rising role of creativity and cultural difference in the development of these new economic forces, using the example of the Harry Potter book series. I then consider how cultural enhancement serves multiple purposes for a nation. Finally, I turn to some of the possible implications of these economic forces for Morocco, stressing that these implications are speculative.
    Keywords: Intangibles; Emerging market economies; Measurement; Economic development
    JEL: C8 O2 O32 Z11
    Date: 2015–04–29
  5. By: S, venkatesh; N, senthilkumar
    Abstract: Television advertising is a most common commercial activity used in advertising medium. Humor in advertising contains an important aspect on changing attitude of the consumer, improves buying behavior and creates new patterns for buying any goods and services. Humor in television advertising is the effective and convenient way to attract the any consumers because they are emotional based content and makes the consumer to special for satisfaction. Compared to all emotions humor advertising is a favorable emotion which plays an important role for consumers to attain a great influence over brand attitude, brand consumption, brand recall and purchasing decisions, increasing efficiency of advertisements. In this paper reviewed on humor in television advertising on consumers attitudes
    Keywords: Humor in advertising: a review on use of television radio and print advertising media, humor in advertising, television, radio, print, advertising media, review on use of television radio and print advertising media, review on television, review on radio, review on print, review on advertising
    JEL: M0 M1 M2 M3
    Date: 2015–03
  6. By: Adena, Maja; Enikolopov, Ruben; Petrova, Maria; Santarosa, Veronica; Zhuravskaya, Ekaterina
    Abstract: How do the media affect public support for democratic institutions in a fragile democracy? What role do they play in a dictatorial regime? We study these questions in the context of Germany of the 1920s and 1930s. During the democratic period, when the Weimar government introduced progovernment political news, the growth of Nazi popularity slowed down in areas with access to radio. This effect was reversed during the campaign for the last competitive election as a result of the pro- Nazi radio broadcast following Hitler's appointment as German chancellor. During the consolidation of dictatorship, radio propaganda helped the Nazis to enroll new party members. After the Nazis established their rule, radio propaganda incited anti-Semitic acts and denunciations of Jews to authorities by ordinary Germans. The effect of anti-Semitic propaganda varied depending on the listeners' predispositions toward the message. Nazi radio was most effective in places where anti- Semitism was historically high and had a negative effect in places with historically low anti-Semitism.
    Abstract: Inwieweit können die Medien zum Schutz oder zur Untergrabung ungefestigter Demokratien beitragen? Und inwieweit können sie Unterstützung für die Politik des Diktators generieren? Wir analysieren diese Fragen im Kontext des Radios in der Weimarer Republik und dem frühen NSRegime. In der Zeit zwischen 1929 und 1932, in der das Rundfunkprogramm pro-demokratisch ausgerichtet war, hatte das Radio einen signifikant negativen Einfluss auf die Wahlergebnisse der NSDAP. Dieser Effekt wurde bereits 5 Wochen nach der Ernennung Hitlers zum Kanzler und der Kontrollübernahme über das Rundfunkprogramm umgekehrt. Nachdem die Nazis ihre Macht konsolidiert hatten, trug die Rundfunkpropaganda messbar zu vermehrten Parteieintritten und zur Zustimmung der Bevölkerung bei der Denunziation von Juden und zu anderen Formen des offenen Antisemitismus bei. Dennoch war der Einfluss der NS-Propaganda nicht uniform. Je nach Voreingenommenheit der Zuhörer konnte die Propaganda sehr effektiv oder aber kontraproduktiv sein. Das NS-Radio war am effektivsten in Orten mit historisch hohem Antisemitismus und hatte einen negativen Effekt auf die Unterstützung der antisemitischen Politik in Orten mit historisch niedrigem Antisemitismus.
    Keywords: Anti-semitism,dictatorship,media,Nazis,propaganda,unconsolidated democracy
    JEL: D72 L82 N74
    Date: 2015

This nep-cul issue is ©2015 by Roberto Zanola. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.