nep-cul New Economics Papers
on Cultural Economics
Issue of 2015‒05‒30
five papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. A quantitative analysis of reading habits By Victor Fernandez-Blanco; Juan Prieto-Rodriguez; Javier Suarez-Pandiello
  2. Does the law of one price hold in non-standard investment markets? Why selling picasso in New York is differents By Andrew M. Jones; Roberto Zanola
  3. Indentifying Bollywood as a crucial factor of India’s economic development: A review analysis By BOUKA, ELENI; MERKOURI, MARIA-MARINA; METAXAS, THEODORE
  5. Culture and Global Sourcing By Yuriy Gorodnichenko; Bohdan Kukharskyy; Gerard Roland

  1. By: Victor Fernandez-Blanco (Departamento de Economia, Facultad de Economia y Empresa, Universidad de Oviedo); Juan Prieto-Rodriguez (Departamento de Economia, Facultad de Economia y Empresa, Universidad de Oviedo); Javier Suarez-Pandiello (Departamento de Economia, Facultad de Economia y Empresa, Universidad de Oviedo)
    Abstract: In this paper, reading leisure habits in Spain are analysed as part of the consumers’ decision process under a general framework of time allocation and emphasizing the role of cultural background. We use the Survey on Cultural Habits and Practices in Spain 2010-2011 to analyse the factors influencing reading habits, measured by the number of books read, and using a Zero Inflated Binomial Negative model. Time restrictions are a relevant barrier for reading habits. Female and educated people show different patterns. Furthermore, cultural attitudes and consumption are determinants of the probability of being a reader but also of the number of books read. This positive effect is linked to activities classified inside highbrow culture. Cultural capital, measured by a set of variables related to cultural home equipment that may also capture an income effect, has also a positive impact. Finally, we have also found relevant urban/rural differences.
    Keywords: reading, cultural capital, cultural habits, factorial analysis, Zero Inflated Binomial Negative model
    JEL: Z11 D11 D12 C25
    Date: 2015–05
  2. By: Andrew M. Jones (Department of Economics and Related Studies, University of York, UK); Roberto Zanola (Institute of Public Policy and Public Choice, University of Eastern Piedmont, Italy)
    Abstract: In the art market there is evidence that arbitrage does not necessarily equalize prices of comparable objects across different cities of sale. The aim of this study is to analyze why the distribution of prices differs between New York (NY) and the Rest of World (RoW). Two questions are addressed: (i) does the distribution change because items sold in NY have different characteristics than items sold in the RoW? (ii) is the distributional change unrelated to these characteristics, and attributable to differences in the hedonic price functions across markets? The unconditional Recentered Influence Function (RIF) regression method is used to investigate the differences across quantiles in the distribution of returns. Secondly, based on quantile RIF-regressions, we decompose price distributions across different markets. This method decomposes the price differential for any quantile. Our main finding is that arbitrage seems to happen with Picasso’s ‘blue chips’, represented by the early (and more expensive) works, while it fails with Picasso’s later paintings, which are much more heterogonous and whose value on the market is lower.
    Keywords: Art market; law of one price; Picasso; RIF regression
    JEL: Z10
    Date: 2015–05
    Abstract: The main content of the following article is to describe the economic growth of an indigenous economy and the factors of its internalization. Bollywood can be used as a paradigmatic showcase for the improvement of ideas in the development of industries of emerging economies. This paper, via an extensive review in several articles, describes Bollywood as an economic factor for Indian’s growth. The reasons that led to this growth are described in an extended way, as well as the role of globalization and Indian’s Diaspora on this development. Finally, it compares the two largest film industries in the world, Hollywood and Bollywood.
    Keywords: Bollywood, Diaspora, economic growth, globalization, Hollywood, India
    JEL: L82 L88 N75 O53 Z11
    Date: 2015
  4. By: Ela Baria
    Abstract: This paper tries to describe Gandhiji’s thought with the help of Education and Culture. This paper describes the meaning and concept of Education and Salient characteristics of education. Education is a process of modification of natural tendencies of an individual. This paper also tries to describe Meaning and definition of culture and Education is an instrument of cultural change. This paper tries to discuss the Role of the B. Ed. Program in Transmission and Advancement of culture with the help of various ways. Key words: Education, Culture
    Date: 2014–09
  5. By: Yuriy Gorodnichenko; Bohdan Kukharskyy; Gerard Roland
    Abstract: This paper develops a model of global sourcing with culturally dissimilar countries. Production of final goods requires the coordination of decisions between the headquarter of a multinational firm and managers of their component suppliers. Managers of both units are assumed to have strong beliefs about the right course of action and are reluctant to adjust their decisions. We characterize the optimal allocation of decision rights across firms when contracts are incomplete. Our theoretical model delivers two key predictions: the incentive of a firm to integrate (rather than outsource) its input supply is decreasing in the cultural distance between the home and the host country and decreasing in trade costs between the two countries. Combining data from the U.S. Census Bureau's Related Party Trade with various measures for cultural distance and trade cost, we find empirical evidence strongly supportive of these two predictions.
    JEL: F1 F14 F23 P14 P26 P48 Z1
    Date: 2015–05

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