nep-cul New Economics Papers
on Cultural Economics
Issue of 2017‒10‒01
three papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. Exporting Creative and Cultural Products: Birthplace Diversity Matters! By Gianluca Orefice; Gianluca Santoni
  2. The market for scoops: A dynamic approach By Ascensión Andina-Díaz; José A. García-Martínez; Antonio Parravano
  3. Creativity and Cognitive Skills among Millennials: Thinking Too Much and Creating Too Little By Brice Corgnet; Antonio M. Espin; Roberto Hernán-Gonzalez

  1. By: Gianluca Orefice; Gianluca Santoni
    Abstract: This paper analyses the effect of birthplace diversity on exports of creative and cultural goods, for 19 OECD countries, over the period 1990-2010. By matching UNESCO's creative and cultural exports classification to trade and migration data, we find a strong positive effect of birthplace diversity on the export of creative products. In particular, a 10% increase in the birthplace diversity index implies a 4% increase in creative goods export. These results are robust across several specifications and shed light on a potential new channel through which migrants can contribute to the host country's export performance. It is interesting to note that only diversity of secondary and tertiary educated immigrants contributes to an increase in exports of creative and cultural goods. An instrumental variables approach addresses the potential endogeneity problems and confirms our results.
    Keywords: Creative Products;International Trade;Birthplace Diversity;Migration
    JEL: F14 F16 F22
    Date: 2017–09
  2. By: Ascensión Andina-Díaz (Department of Economics, University of Málaga); José A. García-Martínez (Department of Economics, University of Málaga); Antonio Parravano (Department of Economics, University of Málaga)
    Abstract: We present a dynamic model of competition and reputation in the media industry, in which firms compete for the publication of scoops and both the publication of scoops and their veracity determine a firm's future reputation. We study the dynamics of firms' reputations and how it relates to two issues: The consumers' preferences for information and the dispersion of the firms' editorial standards for quality. We obtain that in the case of a duopoly, there is only one stable steady state. In this equilibrium the two firms coexist and the identity of the firm that leads the market (i.e., whether it is the firm with the high editorial standard or with the low standard) depends on a combination of the two issues above. We then use numerical simulations to analyze the stochastic dynamics for a larger number of firms. We obtain that most of the insights gained for the duopoly case are robust to the consideration of a higher number of firms. We also draw predictions on the number of firms surviving in the long run, showing that the more severe consumers are with the publication of false stories and/or the more similar the firms' standards for quality are, the higher the number of firms in the stationary state.
    Keywords: Media industry; Competition; Reputation; Stochastic dynamics; Deterministic dynamics
    JEL: L10 L82
    Date: 2017–09
  3. By: Brice Corgnet (EMLYON Business school - EMLYON Business School, GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - UJM - Université Jean Monnet [Saint-Etienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Antonio M. Espin (Middlesex University Business School - Middlesex University Business School); Roberto Hernán-Gonzalez (Nottingham University Business School - UON - University of Nottingham, UK)
    Abstract: Organizations crucially need the creative talent of millennials but are reluctant to hire them because of their supposed lack of diligence. Recent studies have shown that hiring diligent millennials requires selecting those who score high on the Cognitive Reflection Test (CRT) and thus rely on effortful thinking rather than intuition. A central question is to assess whether the push for recruiting diligent millennials using criteria such as cognitive reflection can ultimately hamper the recruitment of creative workers. To answer this question, we study the relationship between millennials' creativity and their performance on fluid intelligence (Raven) and cognitive reflection (CRT) tests. The good news for recruiters is that we report, in line with previous research, evidence of a positive relationship of fluid intelligence, and to a lesser extent cognitive reflection, with convergent creative thinking. In addition, we observe a positive effect of fluid intelligence on originality and elaboration measures of divergent creative thinking. The bad news for recruiters is the inverted U-shape relationship between cognitive reflection and fluency and flexibility measures of divergent creative thinking. This suggests that thinking too much may hinder important dimensions of creative thinking. Diligent and creative workers may thus be a rare find.
    Keywords: Millennials,Creativity, Cognitive Skils
    Date: 2016

This nep-cul issue is ©2017 by Roberto Zanola. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.