nep-cul New Economics Papers
on Cultural Economics
Issue of 2017‒10‒15
four papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. The Import of “cultural goods” and emigration: an unexplored relation By Mauro Lanati; Alessandra Venturini
  2. Understanding the artwork pricing: some theoretical models By Francesco Angelini; Massimiliano Castellani
  3. Television, sustainability and happiness in Peru By Monica Guillen-Royo
  4. The future development of world records By Franziska K. Kruse; Wolfgang Maennig

  1. By: Mauro Lanati; Alessandra Venturini
    Abstract: The paper examines the effect of the import of cultural goods as defined by UNESCO (2009): cultural heritage, performance, visual arts, books, audio-visual material and design on emigration decisions. The import of cultural goods, by affecting individual preferences, reduces the cost of any migration move and favors outflows towards exporting countries. A gravity model for 33 OECD destination countries and 184 sending ones has been estimated for the period 2009-2013. The issue of identification and endogeneity has been addressed through the inclusion of a comprehensive set of fixed effects and by instrumenting cultural imports with past flows and an imputed share of cultural imports à la Card (2001). The positive relationship is robust across different classifications for cultural goods, areas of destination and alternative econometric techniques
    Keywords: Migration, trade in cultural goods, gravity model
    JEL: F16 F22 Z10
    Date: 2017–04
  2. By: Francesco Angelini (Department of Economics, University of Bologna, Italy); Massimiliano Castellani (Department of Economics, University of Bologna, Italy; The Rimini Centre for Economic Analysis)
    Abstract: This paper analyses the pricing of artworks created by an artist and sold for the first time in the art market, investigating the price-formation mechanism at work in the private art market. Assuming price-maximizing agents with both full and asymmetric information on market powers and reserve prices, a bargaining game theory approach is used to explore all possible channels (paths) that a new artwork can take to reach a collector or an auction house. The paper aims to identify the relationships between the artwork prices and the market power of agents operating in each channel of the market, and analyse the role information on private art market price formation. In the full-information model, the market power of each agent is key to identify the market channel that will be preferred by the artist and, then, her incentive in creating a new artwork. In the asymmetric-information model, assuming artists, galleries, and collectors have different levels of information on the quality of the artworks and on the characteristics of the artists, the potential disappointment for the sophisticated collectors and undertreatment for the unsophisticated ones emerge.
    Keywords: cultural economics, fame, talent, bargaining, information
    JEL: C78 D82 D91 Z11
    Date: 2017–10
  3. By: Monica Guillen-Royo (TIK Center for Technology, Innovation and Culture, University of Oslo)
    Abstract: Earlier studies have concluded that television consumption is detrimental to environmental sustainability and people’s wellbeing, due to its promotion of consumerism and materialistic goals. However, recent evidence indicates that, in contexts of relative deprivation, television can be a source of wellbeing, a main provider of entertainment and information. However, this might present a conflict between the wellbeing of present and future generations, and poses a challenge for sustainability policy in developing countries. This article contributes to the emergent debate on the role of television in sustainability policy, by presenting a study of the effects of television viewing in a heterogeneous Peruvian sample (n=500). Regression analysis results indicate that television consumption is negatively associated with sustainable attitudes, partially through the promotion of goals linked to materialism. The relationship between television consumption and happiness is not significant but becomes marginally positive when materialistic goals are accounted for. This study finds that in countries like Peru, television need not limit the wellbeing of present and future generations if materialistic messages are reduced and the content of environmental programmes is critically revised.
    Date: 2017–10
  4. By: Franziska K. Kruse (Chair for Economic Policy, University of Hamburg); Wolfgang Maennig (Chair for Economic Policy, University of Hamburg)
    Abstract: We conduct an innovative analysis of sporting world records by a) using economic instead of sporting determinants and b) by using multivariate stochastic frontier functions. Using data from 48 different disciplines between 1970 and 2014, we show that world records are close to full efficiency and therefore actual athletic frontiers. Forecasts including economic determinants imply that the dynamics of world records largely depend on the dynamics of the frontiers and their driving forces, i.e., socio-economic developments.
    Keywords: World records, productivity growth, stochastic frontier function, technical efficiency
    JEL: C10 C23 C53 L83
    Date: 2017–10–05

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