nep-cul New Economics Papers
on Cultural Economics
Issue of 2015‒08‒13
seven papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Death, Bereavement, and Creativity By Graddy, Kathryn
  2. Looking Behind the Scenes: An Assessment of the Interdependence of Brazilian Cultural Industries By Amir B. Ferreira Neto; Fernando S. Perobelli; Alexandre Rabelo
  3. European Cultural Models in Statistical Perspective: A High-dimensionally Adjusted Cultural Index for the EU Countries, 2005-2009 By Andrej Srakar; Miroslav Verbic; Vesna Copic
  4. American Beauty: trade flows and export costs of US movies   By JD. Tena; G. Meloni; D. Paolini
  5. Do Tax Incentives Affect Business Location? Evidence from Motion Picture Production Incentives By Patrick Button
  6. Strategic Promotion and Release Decisions for Cultural Goods By P. Belleflamme; D. Paolini
  7. Creative Industries: a Preliminary Insight to their Location Determinants By Coll Martínez, Eva; Arauzo Carod, Josep Maria

  1. By: Graddy, Kathryn
    Abstract: Does creativity, on average, increase or decrease during bereavement? Dates of death of relatives and close friends of 33 French artists and 15 American artists were gathered from electronic sources and biographies, and information on over 15,000 paintings was collected from Blouin's Art Sales Index and the Metropolitan Museum of Art's online collection, including over 12,000 observations on price. To preview the results, an event study indicates that prices of paintings decrease by over one-third on average in the two years following the death of a friend or relative. Furthermore, paintings that were created during this bereavement period are less likely to be included in the the Met's collection.
    Keywords: Art Auctions; Creativity; Death
    JEL: O31 Z1
    Date: 2015–07
  2. By: Amir B. Ferreira Neto (Regional Research Institute, West Virginia University); Fernando S. Perobelli (Federal University of Juiz de Fora); Alexandre Rabelo (Federal University of Juiz de Fora)
    Abstract: How important is Brazil’s cultural industries to its economy? We provide an answer to this question by evaluating the interdependence of the cultural activities in the Brazilian production structure and its evolution over the last few years (2005 – 2009). To accomplish this, we disaggregate 13 cultural economic industries in the Brazilian input-output table and calculate several indexes, such as, the production multiplier, linkage indexes, fields of influence and extraction analysis. Results show that the only cultural sector with high links to other sectors in the production structure is Telecommunication, edition and news agencies and that this sector provides the greatest loss in output when removed from the economy. Moreover, the sectors Jewelry, music, instruments and toys, and Manufacture of telecommunication equipment have output multipliers higher than the average of the economy.
    Keywords: cultural economics,cultural industries, input-output tables, interdependence analysis
    JEL: Z10 D57
    Date: 2015–07
  3. By: Andrej Srakar (Institute for Economic Research, Faculty of Economics, University of Ljubljana, Slovenia); Miroslav Verbic (Institute for Economic Research, Faculty of Economics, University of Ljubljana, Slovenia); Vesna Copic (Faculty of Social Sciences, University of Ljubljana, Slovenia)
    Abstract: In the article, we present the construction of a cultural index using datasets of Eurostat’s Cultural Statistics Pocketbooks from 2007 and 2011 and Eurostat’s COFOG data. The datasets allow us a broad perspective over a set of more than 200 variables in 12 domains for the EU-27 member states. Using high-dimensionally adjusted factor analysis (Metropolis-Hastings Robbins-Monro algorithm), we construct a cultural index and determine a set of several cultural dimensions (as seen from the cultural statistics viewpoint). Using clustering analysis, we determine the general similarities and differences of observed cultural models and show several broadly different groupings that roughly, but not exclusively follow the divide speculated in some previous studies. The analysis therefore brings a novel and first statistically developed tool to empirically follow the changes in the condition of culture from the viewpoint of cultural statistics, while the clustering of models has important consequences for empirical cultural policy and has to be verified in future studies.
    Keywords: Cultural statistics, European cultural models, Eurostat, composite indicators, multivariate analysis, Metropolis-Hastings Robbins-Monro algorithm
    JEL: C38 Z11 Z18
    Date: 2015–07
  4. By: JD. Tena; G. Meloni; D. Paolini
    Abstract: Copyright industries face global fixed export costs, in terms of cultural and geographic distance together with formal trade barriers. Adjustment to these costs may occur along both the intensive and the extensive margin. We investigate this issue using a microeconomic approach that considers a hedonic model of revenues for US movie exports to evaluate - aggregation bias; simultaneity in the observation of imported movies and their revenues; and reliable estimations for country clusters. We find that product heterogeneity is a key element for both intensive and extensive margin adjustments at the country level.
    Keywords: trade, movie industry, export costs
    JEL: L82 F14
    Date: 2014
  5. By: Patrick Button (Department of Economics, Tulane University)
    Abstract: Incentives for motion picture production are a recent and popular economic development incentive among U.S. states. I estimate the impacts of state-level motion picture production incentives on filming location, establishments, and employment in the motion picture production industry. Filming locations are highly substitutable while locations for establishments in motion picture production are not substitutable due to agglomeration economies. This provides two very different cases to see how tax incentives affect business location. I quantify impacts on filming location, establishments, and employment using two difference-in-differences methodologies: panel regression analysis and synthetic control case studies of New Mexico and Louisiana, who adopted aggressive incentives early. For incentive data, I created a database of all state incentives from 1980 to 2012 through legal research. For filming location, I use the Internet Movie Database (, which provides 189,598 location choices, and for employment and establishment counts I use the Quarterly Census of Employment and Wages (QCEW). I find that most incentives have a moderate effect on filming location but almost no effects on employment or establishments. These results show that incentives affect location decisions when locations are more substitutable, as in filming, but not otherwise. These results also imply that motion picture production incentives cannot create a local film industry.
    Keywords: tax credits, tax incentive, subsidies, state taxation, firm location, motion picture production, film industry
    JEL: H25 H71 R38 L82 Z11
    Date: 2015–07
  6. By: P. Belleflamme; D. Paolini
    Abstract: We study how producers of cultural goods can strategically increase their promotion budgets to secure the most profitable release dates for their goods. In a game-theoretic setting, where two producers choose their budget before simultaneously setting the release date of their good, we prove that two equilibria are possible - releases are either simultaneous (at the demand peak) or staggered (one producer delays). In the latter equilibrium, the first-mover secures its position by investing more in promotion. We test this prediction on a dataset of more than 1500 American movies released in ten countries over 13 years. Our empirical analysis confirms that higher budgets allow movie studios to move release dates closer to demand peaks.
    Keywords: Non-price competition, Strategic promotion, Strategic timing, Motion pictures
    JEL: L13 L82
    Date: 2015
  7. By: Coll Martínez, Eva; Arauzo Carod, Josep Maria
    Abstract: This paper is about location decisions of Creative Industries and the role played by existent spatial distribution and agglomeration economies of these kinds of activities in order to analyse their location determinants. Our main statistical source is the REIC (Catalan Manufacturing Establishments Register), which has plant-level microdata on location of new plants. Using Count Data Models, our main results show that location determinants are quite similar between both industries and also both non-creative and creative firms are positively influenced by the specialisation level in Creative Industries of municipalities. Moreover, our results provide evidence that the unobserved ‘creative milieu’ has a limited impact on attracting firms. Keywords: creative industries, creative milieu, count data models, industrial location, agglomeration economies
    Keywords: Indústria del lleure, Indústries culturals, Localització industrial, 332 - Economia regional i territorial. Economia del sòl i de la vivenda,
    Date: 2015

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