nep-cul New Economics Papers
on Cultural Economics
Issue of 2017‒06‒04
three papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. Transformations of the Art Market in the World – Quantitative Approach By Joanna Bialynicka-Birula
  2. Financing rules of the activity of cultural institutions in the context of economic efficiency By Malgorzata Galecka; Katarzyna Smolny
  3. The Production of Information in an Online World: Is Copy Right? By Cagé, Julia; Hervé, Nicolas; Viaud, Marie-Luce

  1. By: Joanna Bialynicka-Birula (Cracow University of Economics)
    Abstract: The dynamics of the art market is usually presented using price perspective, price indexes for the market and financial returns. In this paper the value and volume approach is proposed, that haven’t been considered in aggregative way for a longer period of time in the literature. The presentation of changes taking place in the global art market in the period 2002-2015 is the aim of the paper. The results of dynamic analysis of the art market have been presented, including the two approaches: value and volume of transactions. The impact of the global crisis on the art market has been considered. In order to present the changes on the global art market statistical indexes of dynamics (single base and chain indexes) have been used. Moreover the trend analyses have also been conducted for the value and volume of transactions on the art market. The sources of data on the global art market have come from Artprice, ArtTactic, TEFAF (The European Fine Art Foundation). In the analyzed period 2002-2015 the changes of sales on the global art market had in general increasing tendency. The value and volume of sales have reached their tops in 2007 and 2014. The art market has been touched considerably by economic recession in 2009, but in the next year it has already staged a recovery. The trend analyses have allowed describing the changes on the market by means of mathematical functions. The analyses have allowed identifying the countries with the largest share in the global art market. A particular attention has been paid to the existence of triad on the art market, including the countries of Europe, USA and China. It is noteworthy that Europe and USA have dynamically lost their market share in favor of China.
    Keywords: art market; art economics; art; market analysis, cultural economics
    JEL: C C1 D4 F6 Z11
    Date: 2017–05
  2. By: Malgorzata Galecka (Uniwersytet Ekonomiczny we Wroclawiu); Katarzyna Smolny (Uniwersytet Ekonomiczny we Wroclawiu)
    Abstract: The aim of this article is the efficiency evaluation of statutory subsidies granted to cultural institutions in the context of subsidizing rules of these institutions. From the economic point of view, the financial analysis of cultural institutions shows economic inefficiency of all institutions. In the majority these are institutions that live on thanks to income from the organizer’s subsidies, generating low own revenue in relation to incurred costs. The authors make the argument that subsidized cultural institutions in Poland report heterogeneous financial results despite the fact that their financial management is based on the same financing rules. The authors assume that similar amounts of transfers should provide a comparable range of performed tasks, and thus the access to goods and services supplied. The subject of the study of measuring the economic efficiency of the expenditure of cultural institution are public theatres and music institutions in big cities. The object of the study was limited to cultural institutions whose core business include performing arts.In the paper, while fulfilling the set objective of the study and while verifying the hypothesis graphical method, descriptive statistics, as well as methods of statistical inference have been used. It should be emphasized that despite homogenous principles of granting statutory subsidies, the economic efficiency of individual cultural institutions of culture is diverse. Lack of correlation between the level of financial results, the level of the statuary subsidies and of thetotal costs of a cultural institution leads to conclusion that more factors in this field should be investigated.
    Keywords: economic efficiency;public expenditures;cultural institutions; financing rules, subsidies
    JEL: H7
    Date: 2017–05
  3. By: Cagé, Julia; Hervé, Nicolas; Viaud, Marie-Luce
    Abstract: This paper documents the extent of copying and estimates the returns to originality in online news production. We build a unique dataset combining all the online content produced by the universe of news media (newspaper, television, radio, pure online media, and a news agency) in France during the year 2013 with new micro audience data. We develop a topic detection algorithm that identifies each news event, trace the timeline of each story and study news propagation. We show that one quarter of the news stories are reproduced online in less than 4 minutes. High reactivity comes with verbatim copying. We find that only 32.6% of the online content is original. The negative impact of copying on newsgathering incentives might however be counterbalanced by reputation effects. By using media-level daily audience and article-level Facebook shares, we show that original content represents 57.8% of online news consumption. Reputation mechanisms actually appear to solve about 40% of the copyright violation problem.
    Keywords: Copyright; Facebook; Information spreading; internet; Investigative journalism; reputation
    JEL: L11 L15 L82 L86
    Date: 2017–05

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