Showing papers in "Journal of Cultural Economics in 2003"

Determining the Value of Cultural Goods: How Much (or How Little) Does Contingent Valuation Tell Us?

Abstract: Contingent valuation methods (CVM) are now well established as a means of measuring the nonmarket demand for cultural goods and services. When combined with valuations provided through market processes (where relevant), an overall assessment of the economic value of cultural commodities can be obtained. Within a neoclassical framework, such assessments are thought to provide a complete picture of the value of cultural goods. But are there aspects of the value of cultural goods which are not fully captured, or not captured at all, within such a model? This paper argues that CVM provides an incomplete view of the nonmarket value of cultural goods, and that alternative measures need to be developed to provide a fuller account. of Sydney which sought to measure the community's willingness to pay (WTP) for the perceived public-good benefits of the arts. Around 825 respondents were questioned about the nature and extent of the nonmarket benefits they enjoyed from the existence of the subsidised arts in Australia - literature, visual arts, music, theatre, dance, etc. - and they were asked to nominate the dollar amounts they would be willing to pay out of their taxes to support the arts, under conditions of both liability and nonliability for actual payment. With appropriate caveats, we concluded from our research that aggregate WTP for the public-good benefits of the arts in Australia at that time exceeded the then-prevailing tax-price of cultural subsidy. What did we think we were measuring in this study and what did we actually measure? As far as the arts were concerned, our work was predicated on two princi- pal motivations, one theoretical and one practical. The theoretical drive came from a desire to test the longstanding proposition that the arts were a case of market failure. This hypothesis, first articulated in the 1960s (Baumol and Bowen, 1966; Peacock, 1969) and elaborated at length in our own book of 1979 (Throsby and

Contingent Valuation and Cultural Resources: A Meta-Analytic Review of the Literature

Abstract: Contingent valuation methodology (CVM) has been increasingly applied to cultural re- sources. CVM employs survey methods to gather stated preference information, which can be used to estimate economic values of various cultural resources and projects. Although popular in other fields, the application of CVM in the cultural arena is relatively recent. This article summarizes this growing body of empirical literature and its range of findings. A meta-analysis gives a statistical view of the "state of the art" of the literature. This preliminary analysis sheds light on the consistency and validity of the use of this method in cultural applications.

Superstar Museums: An Economic Analysis

Abstract: There are thousands of museums of many different kinds in all countries of the world. This paper deals with a select few among those museums, namely the generally well-known and world famous museums of art, particularly those focusing on paintings. I shall call these institutions “superstar museums” because they have a special status, which sets them apart from other museums.

Using Stated-Preference Questions to Investigate Variations in Willingness to Pay for Preserving Marble Monuments: Classic Heterogeneity, Random Parameters, and Mixture Models

Abstract: This paper investigates heterogeneity in the preferences/WTP (willingness to pay) to preserve marble monuments in Washington, D.C. This is done in the context of three different discrete-choice random-utility models. The main focus is to estimate a mixture model of choices over preservation programs. This model captures the best features of random-parameters models and models that assume preference parameters are deterministic functions of observable characteristics of the individual. The mixture model, and it alone, predicts that increased preservation is a bad for a sig- nificant proportion of young, non-Caucasians. That some proportion of the population might consider preservation a bad is a contingency that should be planned for in efforts to value cultural resources. Data and computer code are available at http://www.colorado.edu/economics/morey/dataset.html .

Contingent Valuation and Semiparametric Methods: A Case Study of the National Museum of Sculpture in Valladolid, Spain

Abstract: Research on cultural economics is very interested in the economic valuation of non- market goods, particularly in the field of cultural heritage where contingent valuation techniques are currently being used with both parametric and non-parametric statistical methods to estimate the willingness to pay for cultural goods. In the literature analysed, the number of studies using semiparametric methods, however, is very limited. Our analysis is intended to help fill this gap by offering a parametric, non-parametric and semiparametric economic valuation of the National Mu- seum of Sculpture (Museo Nacional de Escultura), located in Valladolid, Spain. In addition, we also gain insight on a controversial issue affecting most European museums, particularly those located in Latin countries: the role voluntary donations might play in the funding of public museums.

Expert Opinion and Gastronomy: The Recipe for Success

Abstract: Experts' opinions play an important role in the gastronomic market for the following reasons: information is imperfect and very costly to acquire and quality is, in large part, subjective and consumers need experts to define it. The number of guidebooks currently issued, their success (Michelin: 650,000 sold; GaultMillau: 200,000 sold) and the strong level of correlation generally obtained between prices and ratings or rankings (0.63 on average) for this class of activity illustrate this influence. Without experts, supply and demand would find it difficult to meet.Therefore, identifying the determinants of these evaluations of quality and then estimating their respective impact become relevant. According to the experts, the art of cooking is the only determinant that they take into account when selecting and then evaluating the chefs. For the chefs, the setting also appears to be a determinant and not the least important one.What is the best strategy to become a ``first rate'' chef? Would Alain Ducasse, one of the most famous French chefs, get the same rating in a roadside cafe as in a luxury restaurant? To answer these questions, a quality equation is estimated using an original database concerning 185 leading French chefs who have been selected in one of the most famous French guidebooks: GaultMillau (2000 edition). The results show that there are two strategies to become a ``first rate'' chef but that the art of cooking prevails over setting. This is in line with the observation that some gourmet restaurants tend to over-invest in luxurious surroundings.

The Regrettable Necessity of Contingent Valuation

Abstract: Ordinary markets allow parties, not the state, to value property and projects. But they do not account for subjective value in such traditional contexts as condemnation. An awareness of these nonmarket values helps overcome any categorical opposition to the use of the contingent valuation method (CVM) to value cultural and environmental resources. But accurate CVM should measure all values, positive or negative, tononowners; it should apply generally to any substitute projects; and it should seek to account for diminishing marginal value of additional resource units. CVM should be used only to aggregate nonmarket preferences, not to skew the political debate to cultural or environmental objectives.

The Economic Dimension of the Culture and Leisure Industry in Spain: National, Sectoral and Regional Analysis

Abstract: This article analyses the economic dimension of a set of activities groupedunder the heading, Culture and Leisure Industry, from three complementaryperspectives: national (Spain), sectoral and regional. Particular emphasis isplaced on determining the value added generated by this industry and itscontribution to the Gross Domestic Product – 4.5% – as wellas showing its level of employment both in absolute terms and as a percentageof the number of employees in the economy – 7.8%. This is apioneer project; studies in this field on either a national or internationalscale are scarce. The study demonstrates that the cultural sector is aproductive activity generating wealth in Spain. However, a high degree ofheterogeneity is found at both the sectoral and regional levels. Economicactivity is led by Performing, Musical and Audiovisual Arts (mainlyTelevision) and Publishing and Printing, which jointly account for about70% of sales and gross value added, and it is concentrated in similarproportions in developed regions specialized in service industries, Madrid andCatalonia, where most culture and leisure activities are available.

Can People Value the Aesthetic and Use Services of Urban Sites? Evidence from a Survey of Belfast Residents

Abstract: This study explores the potential of conjoint choice experiments for planning decisions on urban sites. We elicit people's preferences for regeneration projects that change the aesthetic and use character of specified urban sites. We use a split-sample design with two sets of regeneration projects. The first entails hypothetical transformations of an actual square with an important cultural and historical dimension. The other consists of hypothetical transformations of an abstract square which we try to make as close as possible to the former in all respects, except for its cultural and historical dimension. Each regeneration project is defined by aesthetic and use attributes. Our results suggest that individual choices are explained by the attributes, andthat the marginal utilities are significantly different across projects forthe actual and the abstract square.

What Becomes of Undergraduate Dance Majors

Abstract: This paper examines the earnings, work patterns, and work histories of individuals employed in the field of dance using data from a survey of graduates of the Five College Dance Department. The respondents to our survey include not only those currently working in dance, but also some who never entered the profession and many others who entered but later left the field. We find that graduate education in dance, age, and prior dance experience are highly correlated with employment in the field of dance. Our findings are similar to those of other studies on artists, in showing that the returns to dance are low and that many of those employed in dance rely on non-dance jobs to supplement their dance earnings.

Valuing the Canadian Broadcasting Corporation

Abstract: Over recent years the Canadian government has struggled to determine how muchmoney should be spent on the Canadian Broadcasting Corporation (CBC), itspublic service broadcaster. At the same time, regulators and CBC managementhave struggled with what types of programming services it should provide.Traditionally, the citizen's role in public broadcasting decision making hasbeen limited to an occasional submission at a hearing or a response to apublic opinion survey. However, willingness-to-pay stated preference choiceexperiments could be an effective, low cost means of obtaining more detailedcitizen's input. Here, we report findings from a national survey of Canadianhouseholds in which contingent valuation and choice experiment data are usedto estimate use and non-use values of the various programming servicesprovided by the CBC. The results are used to address policy and programmingissues facing the organization.

Public Broadcasting in Europe: Rationale, Licence Fee and Other Issues

Abstract: This paper deals with some key issues arising in the current debate in Europeover public sector broadcasting (PSB). It asks what is understood by PSB andexamines critically the arguments for PSB. The latter is done under fiveheadings, namely diversity, democracy/equality, network externalities,innovation and investment and public braodcasting as ``insurance''. The paperthen provides some statistical analysis of the extent, funding and programmemix of Eurepean PSB. Finally it examines in some detail the issues surroundingthe licence fee as an instrument for funding PSB. These include thedetermination of the level of the fee, collection costs and evasion and thefairness of the instrument.

Cultural and Sport Economics: Conceptual Twins?

Abstract: Is there a role for sports economics in arts research? Despite references to similarities between the arts and sports (especially community impacts, demand interdependencies, and the presence of superstars), the two burgeoning literatures operate in near isolation from one another. This parochialism is not justified by legitimate distinctions; arts labor analysis, in particular, could benefit from sports research. This paper demonstrates this proposition with a focus on: team production functions and income dispersion; unions and rent distribution; managerial and director productivity; earnings functions and changing talent distributions related to competing superstar theories; and career development, screening and human capital theory.