nep-cul New Economics Papers
on Cultural Economics
Issue of 2016‒08‒07
four papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. Culture and Institutions By Alesina, Alberto Francesco; Giuliano, Paola
  2. Newspapers in Times of Low Advertising Revenues By Angelucci, Charles; Cagé, Julia
  3. Cultural Transmission and Socialization Spillovers in Education By Del Bello, Carlo; Panebianco, Fabrizio; Verdier, Thierry; Zenou, Yves
  4. Evaluating Advertising Effectiveness of Creative Television Advertisements for High Involvement Products. By Ali, Mazhar

  1. By: Alesina, Alberto Francesco; Giuliano, Paola
    Abstract: A growing body of empirical work measuring different types of cultural traits has shown that culture matters for a variety of economic outcomes. This paper focuses on one specific aspect of the relevance of culture: its relationship to institutions. We review work with a theoretical, empirical, and historical bent to assess the presence of a two-way causal effect between culture and institutions.
    Date: 2015
  2. By: Angelucci, Charles; Cagé, Julia
    Abstract: Newspapers' advertising revenues have declined sharply in recent decades. We build a model to investigate the consequences on newspapers' pricing and quality choices of a reduction in advertisers' willingness to pay for readers' attention. In our model, selling subscriptions in addition to newsstand issues allows to price discriminate between readers. We show that lower advertising revenues decrease newspapers' incentives to provide quality, which increases newspapers' incentive to price discriminate whenever readers' sensitivity to quality is sufficiently high. We build a unique dataset on French newspapers between 1960 and 1974 and perform a difference-in-differences analysis using a "quasi-natural experiment": the introduction of advertising on television in 1968, which affects national newspapers more severely than local ones. We find robust evidence of increased price discrimination and decreased quality as a result of the drop in advertising revenues, which may help rationalize current industry trends.
    Keywords: advertising; Newspaper industry; Newspaper quality; price discrimination; Two-sided markets
    JEL: L11 L15 M37
    Date: 2016–07
  3. By: Del Bello, Carlo; Panebianco, Fabrizio; Verdier, Thierry; Zenou, Yves
    Abstract: We propose a model of the intergenerational transmission of education where children belong to either high-educated or low-educated families. Children choose the intensity of their social activities while parents decide how much educational effort to exert. We characterize the equilibrium and show under which condition cultural substitution or complementarity emerges. There is cultural substitution (complementarity) if parents decrease (increase) their education effort when their child socializes more with other children of the same type. By structurally estimating our model to the AddHealth data in the United States, we find that there is cultural complementarity for high-educated parents and cultural substitution for low-educated parents. This means that, for both parents, the more their children interact with kids from high-educated families, the more parents exert educational effort. We also perform some policy simulations. We find that policies aiming at mixing high and low educated children perform well in terms of average educational outcomes. We also show that a policy that gives vouchers to children from high-educated families have a positive and significant impact on the educational outcomes of all children while a policy that gives vouchers to children from low-educated families has a negative effect on the outcomes of both groups.
    Keywords: cultural transmission.; education; homophily; Social Networks
    JEL: D85 I21
    Date: 2016–07
  4. By: Ali, Mazhar
    Abstract: This study investigates advertising effectiveness of creative TV advertisements (Ads) for high involvement products. The majority of such studies have been conducted using low involvement products. There is a need to conduct a research to find out the effectiveness of creative advertisements for high involvement products.This study will fill this knowledge gap. This study aimed at measuring the impact of creativity in Ads on Attitude toward Advertisement,Unaided Recall and Purchase intention. It involved 94 university students in an experimental research. Paired sample t-test was used for evaluating creative and control Ads .Data analysis reveals that creative Ads are better than control Ads in generating favorable attitude toward ad and high Ad recall but equally ineffective in persuading customers to buy. Binary logistic regression showed small role of creativity in causing high Ad recall while multiple regression analysis confirmed the supremacy of creative Ads for forming a favorable attitude toward Ad.
    Keywords: Creativity, advertising effectiveness, purchase intention, Aided Recall, Un-aided Recall, Product involvement.
    JEL: M37 M39
    Date: 2016–01

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