nep-cul New Economics Papers
on Cultural Economics
Issue of 2016‒10‒30
four papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. Where Are the Artists? Analyzing Economies of Agglomeration in Spain By Ivan Boal-San Miguel; Luis Cesar Herrero-Prieto
  2. Ranking Value and Preference: A Model of Superstardom By Harashima, Taiji
  3. Greenfield versus Merger & Acquisition FDI: Same Wine, Different Bottles? By Ronald B. Davies; Rodolphe Desbordes; Anna Ray
  4. The development of hotel industry due to mega sport event. The case of Euro 2012 in Poland By Pavlov, Aleksandr

  1. By: Ivan Boal-San Miguel (Department of Applied Economics, University of Valladolid); Luis Cesar Herrero-Prieto (Department of Applied Economics, University of Valladolid)
    Abstract: The creative economy has become the subject of increasing interest in recent years, both in the area of cultural economics as well as in economic development studies and the analysis of spatial disparities. In this regard, various studies have examined the spatial logics of cultural and creative industries, although analyses into the location and agglomeration of artists therein remain few and far between, in other words inquiry into the activities location linked to artistic creation in a purer sense. The present work thus seeks to delve into location and spatial structure of the cultural sector in a Spanish region, focusing specifically on activities more closely linked to artistic creativity, such as literary creation, performing arts, bullfighting, music, cinema, etc. The work examines the autonomous community of Castilla y León as an example, and posits an analysis of the spatial distribution of artists using micro-spatial disaggregation, in other words taking the network of towns as the territorial analysis unit. Spatial econometric techniques are used to identify location patterns, pinpoint territorial activity clusters and to measure agglomeration economies. A first look at the findings reveals that the cultural sector in Castilla y León evidences a strong trend towards concentration, with spatial distribution patterns which lead to the formation of statistically significant cultural clusters and strong spatial dependence between territories over the whole of the period analysed (2005-2013).
    Keywords: Artists, spatial economic analysis, economies of agglomeration, cultural clusters, micro-territorial analysis
    JEL: Z11 R12
    Date: 2016–10
  2. By: Harashima, Taiji
    Abstract: Superstars earn extremely high incomes as compared with those of ordinary people, but why? In this paper, I present a model of superstardom that explains the mechanism of extremely high incomes based on the concepts of ranking value and ranking preference. I propose that goods and services possess not only practical values but also ranking values because people derive utility through various types of rankings. This emotional response (i.e., ranking preference) gives monopolistic powers to the producers of some types of goods or services. For some goods and services (e.g., professional sports), the ranking preference is very strong and therefore so is the level of monopolistic power. This strong monopolistic power is the origin of the extremely high incomes of superstars.
    Keywords: Superstar; Income inequality: Ranking Value; Ranking preference; Monopoly
    JEL: D11 D31 D42 D63 J30
    Date: 2016–10–20
  3. By: Ronald B. Davies (UCD - University College Dublin [Dublin]); Rodolphe Desbordes (University of Strathclyde - University of Strathclyde); Anna Ray (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)
    Abstract: Relying on a large foreign direct investment (FDI) transaction level dataset, unique both in terms of disaggregation and time and country coverage, this paper examines patterns in greenfield (GF) versus merger & acquisition (MA) investment. Although both are found to seek out large markets with low international barriers, important differences emerge. MA is more affected by geographic and cultural barriers and exhibits opportunistic behaviours as it is more sensitive to short-run changes, such as a currency crisis. On the other hand, GF is relatively driven by long-run factors, such as origincountry technological and institutional development or comparative advantage. These empirical facts are consistent with the conceptual distinction made between these two modes, i.e. MA involves transfer of ownership for integration or arbitrage reasons while GF relies on firms own capacities, which are linked to the origin countries attributes. They also suggest that GF and MA are likely to respond differently to policies intended to attract FDI.
    Keywords: Multinational Firms,Greenfield Investment,Mergers and Acquisitions,Foreign Direct Investment
    Date: 2015–03–04
  4. By: Pavlov, Aleksandr
    Abstract: The implications of mega sports events for the organiser’s economy remain virtually unexplored in Poland. The fact that our country was entrusted with organising the 2012 European Football Championship spurred interest in the issue. In the course of preparations to the event many doubts have arisen as to the actual cost-benefit balance affecting the hosting country. An attempt at arriving at the nagging question, i.e.: „Is organisation of such a large event profitable from the economic point of view?” is hindered by the specificity of events of the kind. This specificity is due not only to the huge scale of the projects pursued, but also to the long-term impact on the organiser’s economy, stretching long beyond the several-year period of preparations. The organization of Euro 2012 in Pomerania was an event without precedent. Never before has such a large event had no place in Poland. The consequence of this state of affairs is unprecedented scale of the changes in the infrastructure environment. These changes flow to the SME sector, which attempted to capture the benefits from the fact of the Euro organization, although the results of the research presented in the article indicate the exceptional restraint in this regard. As many as 87% of the surveyed companies had not taken any action before the final tournament, even though they treated the event as a chance to develop. Because of football meetings played in Pomerania the hotel business was an industry which expected the greatest benefits. It should be emphasized the importance of promoting the city and wider the whole region for the future operation and development of this sector.
    Keywords: Euro 2012, Mega sporting event, Tourism sector
    JEL: H00
    Date: 2016–10–20

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