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The trend towards digitalisation and technological innovation has reshaped the cultural and creative industries (CCIs) by changing the existing funding models and structures. The aim of this article is to explore the impact of cultural dimensions and policies on the adoption of reward-based crowdfunding as a new form of finance for firms in the CCIs in 12 different European countries during the 2015–2019 period. Our results show that national cultural dimensions and policies significantly affect the demand for cultural and creative crowdfunding. Specifically, the adoption of crowdfunding is broader in individualistic countries and in societies characterised by higher uncertainty avoidance, indulgence, short-term orientation, and lower levels of discrimination between genders. Furthermore, we find that the liberal welfare state model, characterised by limited government interference, market orientation, privatisation and a focus on self-responsibility, and the Southern European welfare model, based on a weak and inefficient state, increase the adoption of crowdfunding in the CCIs. The presence of a central ministry with cultural competence also increases the adoption of crowdfunding in the CCIs. Our findings show a U-shaped relationship between European grants and the demand for crowdfunding, mainly driven by a high or low European involvement within these sectors. We also identify a moderation effect of EU grants on the relationship between cultural dimensions and crowdfunding adoption, suggesting that the magnitude of this relationship depends on the amount of EU grants awarded in a specific country. As a robustness check, we run a set of Poisson regressions with correlated random effects (CREs), confirming our main results. [ABSTRACT FROM AUTHOR]

This study evaluates the effectiveness of a novel cultural policy to recover the valorization function of Italian state museums by increasing managerial autonomy. The policy is part of the Franceschini reform, introduced in 2014, that concerns the governance of cultural institutions and was justified by the severe budget constraints resulting from economic crisis and a spending review. Given the staggered implementation of the reform across 32 museums that obtained special autonomy, we apply a difference-in-differences strategy that allows to properly investigate the causal effect of the policy reform on museums' outcome measures of exhibition function, as visitors and revenue from admissions. Our findings robustly support the effectiveness of the cultural policy reform in terms these outcomes. Although we provide some suggestive evidence of the efficacy of museums' management (through a number of communication and supplementary services), this study suffers of the limitations due to the lack of more appropriate measures on how successful changes in management have been. However, results aim to offer policy recommendations in favor of greater managerial and financial autonomy of state museums that, while preserving their conservation function, can promote the widespread utilization of collections ensuring museums' greater sustainability. [ABSTRACT FROM AUTHOR]

In recent years, we have seen large investments in spectacular buildings hosting cultural institutions, with the dual aim of facilitating culture and generating economic growth. This article raises the question of whether the investments have shifted the priorities of cultural policy, and sets out to investigate the effect of the establishment of 52 culture houses in Norwegian municipalities using panel data and a difference-in-difference approach. The results confirm an increased prioritization of the sector in the years following the opening of the culture houses, indicated by a large increase in the municipal expenses for culture. The results further support that there has been a shift in priority, as there seems to be a stronger support for professional arts and a lower support for activities directed toward amateur organizations and children/youth. There are also strong indications of growth in "new" arenas of art and culture, indicated by a significant increase in the number of cinema displays and theater performances, in addition to a significant growth of jobs related to art and entertainment. [ABSTRACT FROM AUTHOR]

We make the case for further advancing cultural economics through the application of behavioural economics methods and insights. Behavioural economics offers a reconciliation of two distinct strands within cultural economics, one that observes neoclassical economic method, and one that affirms the abundant psychological aspects of cultural economising. We argue that behavioural economics is well positioned for a synthesis as it was designed for the study of psychological 'anomalies' within the spirit and methodology of economics. We identify and discuss selected contributions to this emergent but dispersed literature and highlight promising areas that may be further investigated. We also explore the potential for behavioural economics to contribute to cultural policy. [ABSTRACT FROM AUTHOR]

The purpose of this article was twofold. Firstly, to investigate the heterogeneity among artists as an occupational category and secondly, to define arts as a profession and thereby to make a distinction between professional artists and amateurs. Artists' income and working conditions have been the subject of several studies, and many different sampling criteria have been used. Scholars have not yet achieved consensus on who should be included in the profession. In this article, we make an innovative contribution to this conversation. By applying a finite mixture model, which combines latent profile and latent class analysis, we have been able to identify different segments of artists in terms of professionalism. Each of these mutually exclusive classes is characterized by a particular income and working situation. We also include a membership function, estimated through a logistic regression, which allows prediction of the probability that an individual will belong to each class, given his/her socioeconomic characteristics. The subject of our study is Danish visual artists. The dataset consists of a combination of register data from Statistics Denmark and data collected from a questionnaire survey with 892 respondents. Based on the artists' civil registration numbers, the two sources have been merged into a unique dataset. Our finite mixture model shows the heterogeneity among artists. Combined with a theoretically definition of arts as a profession, our research propose a distinction between professional artists and amateurs that cuts across categories used in prior literature. The results can be beneficial to cultural policy. [ABSTRACT FROM AUTHOR]

Cultural institutions are the main beneficiaries of public funds for culture. However, cultural policies suffer from 'adhocism' in the administration of institutions, which are often publicly owned and receive little recognition of the benefits that society gains from their use. The aim of this study is to provide the measurement of the use value of access to cultural institutions. Based on the observed individual attendances and their costs, a two-stage budgeting model is employed to estimate the change in consumer surplus related to the loss of access to cinemas, museums, and theatres in Warsaw, Poland. It is the first non-market valuation of cinemas in the existing literature. The inclusion of institutions' entire markets helps to overcome the bias caused by the embedding effect and the availability of substitutes, which affects many single-site valuations. The estimated use values are compared with the subsidies received by the three groups of cultural institutions. Results reveal substantial benefits provided by cinemas, although cinemas are nearly excluded from the circulation of public support. The estimated use value is enough to justify subsidies for both highly subsidised sectors of museums and theatres. The estimation of use values serves as a starting point for the evaluation of the use of public resources. [ABSTRACT FROM AUTHOR]

Brazil is characterized by a sharp consumption market and cultural activities across its distinct locations and social groups. With this in mind, this paper focuses on the relationship between supply of cultural facilities in Brazilian Metropolitan Regions (MR) and household expenditure on outdoor cultural activities through estimation of a two-stage (households and MRs) multilevel logistic model, using microdata from the Brazilian Consumer Expenditure Survey of 2002–2003 and 2008–2009. It was concluded that there is a strong concentration of expenditure distribution among different socioeconomic groups, and that expenditures on outdoor cultural activities (movies, concerts and arts) have demonstrated to be weakly correlated with the qualities of the different study Brazilian MRs, because greater variability of expenditure occurs within these regions. Thus, we also confirmed the hypothesis that recent advances in cultural policies have not been enough to reverse the inertia of inequality. Therefore, public initiatives in favor of cultural democratization, especially for inclusion of lower classes in cultural spaces, should consider the issue comprehensively, combining institutional supply issues, urban policy and public education. [ABSTRACT FROM AUTHOR]

We study the socioeconomic determinants of cultural participation in thirteen major Chinese cities for a broad range of indicators that cover highbrow and popular cultures. Consistent with previous studies from high-income countries, we find strong support for the elitism hypothesis: education and income increase participation in a broad range of cultural activities. There are also some exceptions. Interestingly, we also find a U-shaped relation between participation and city development for free and publicly supplied culture. Moreover, the impact of education, and to some extent also income, is weaker in richer cities. These findings contribute to understanding China’s key policy objective of promoting equal access to culture. [ABSTRACT FROM AUTHOR]

One of the available and yet controversial tools in cultural policy at the national level is the reduction of VAT rates for cultural goods and services. We document the standard and reduced VAT rates in EU-28 countries in the period from 1993 to 2013 and explore the underlying determinants. We further introduce a simple theoretical framework to explain how reduced fiscal rates are expected to decrease prices and increase quantities of the consumed cultural goods and services. We then estimate quantitatively that a decrease in the VAT rate for books by one percentage point is associated with an economically significant drop in the price by 2.6%. Finally, we show the positive effect of a fiscal rate reduction on the book expenditure, where a one percentage point decrease in the VAT rate for books leads to an increase in expenditure by 2.7%. [ABSTRACT FROM AUTHOR]

The relationship between culture and tourism has been widely investigated from different perspectives. A large strand of literature studies the role of cultural heritage to attract tourists, while a rich bulk of studies on cultural participation investigates the impact of tourism flows on the demand for culture. Another aspect worth investigating relates to the link between cultural participation and the performance of tourism destinations (TDs), as a higher cultural participation in an area could boost the performance in the management of tourism resources. However, so far, this issue has been disregarded in the literature, and this paper aims at filling this gap. Specifically, it studies the effect of cultural participation on TDs' performance using a conditional efficiency approach that ensures robust inference on the role of environmental factors. We employ data on the Italian regions for the period 2004-2010, and we explore the role of cultural participation for tourism by using several indicators. Our findings offer empirical support to the positive role of cultural participation and, thus, suggest that public cultural policies might also boost the efficiency of the tourism sector. [ABSTRACT FROM AUTHOR]

This article examines the extent to which demographic and socioeconomic characteristics influence the decision to visit and the number of visits to museums, art galleries, historical monuments, and archaeological sites. Using ordered probit models based on data for 350,000 adults in 24 EU countries, we find that the likelihood and number of such visits depend mainly on per capita household income, education, labor market status, and country of birth. Attained characteristics such as education and income have remarkably similar positive effects on cultural participation across the countries in our sample, while the effects of age and gender are both weaker and less consistent across countries. We conclude that cultural distinctions along the lines of socioeconomic attainment are stable even in very different country contexts with varying cultural policies and economic conditions. We discuss the way these results inform three research topics: identification of the characteristics of visitors to museums and historical sites in order to attract new audiences; the effect of public spending on culture on accessibility to cultural sites; and cross-national variation in cultural stratification. [ABSTRACT FROM AUTHOR]

We investigate the relationship between Italian municipalities' spending on culture in the 1990s and 2000s and a number of political variables-such as a left/right dummy, an election-year dummy and a term-limit indicator-controlling, among other things, for economic and socio-demographic characteristics of the population, the level of human capital and instruction, proxies of social capital, the extent of private financing of cultural provisions and touristic and artistic relevance. We use a panel-data regression analysis and find that, indeed, some determinants of public expenditures on culture are political. In particular, we identify an electoral cycle in which the incumbent spends less on culture in an election year. This result is robust for variations in the empirical model accounting for both the persistence and spatial interdependence of cultural expenditures by municipalities. [ABSTRACT FROM AUTHOR]

This article compares and contrasts Adler and Rosen's theories regarding the stardom and popularity of musical artists through the impact of local linguistic policies on consumers' decisions to buy recorded music (CDs). Spain, with local linguistic policies implemented in Catalonia and the Basque Country, serves as an ideal quasi 'natural experiment' for testing these theories. The authors' predictions are addressed within a multilevel regression framework, with two main results: first, contrary to Rosen's predictions, the impact of local linguistic policies on the probability of buying music CDs is positive; second, local linguistic policies seem to contribute to increasing the production of music CDs in local languages, increasing the popularity of local artists with their audiences. [ABSTRACT FROM AUTHOR]

My stance is that copyright policy should be viewed as part of cultural policy; cultural economists have had a great deal to say about subsidy and cultural policy but very little about copyright, though cultural economics is well placed to analyse copyright as an incentive to creativity in the creative industries because of its understanding of cultural policy and of artists’ labour markets. The article contrasts subsidy and copyright as policy tools and briefly discusses two current policy problems in relation to copyright—regulating copyright collection societies and the so-called ‘copyright levy’—arguing that these are the sort of issues cultural economists could (and should) be dealing with. [ABSTRACT FROM AUTHOR]

Governments often see it as their responsibility to support cultural life and at times spend a significant amount of resources in the pursuit of this goal. The present article analyses whether and how municipalities influence each other in this decision to spend resources on the arts (using data on local government cultural spending in 304 Flemish municipalities in 2002). Following ‘central place theory’, the focal point of the analysis is the idea that––especially for cultural expenditures––large municipalities (and, specifically, ‘central places’) may affect their neighbours’ behaviour differently than small municipalities. The empirical analysis supports this idea. Indeed, we show that Flemish municipalities’ cultural spending is generally positively affected by that in neighbouring municipalities. This pattern is, however, significantly more complex for municipalities neighbouring the 13 largest Flemish cities. [ABSTRACT FROM AUTHOR]

This report focuses on state government appropriations to state arts agencies (SAA), a primary figure in arts and cultural policy in the United States. A dynamic panel-data estimator can identify the fiscal, institutional, and demographic determinants on SAA appropriations. Agency budgets are particularly sensitive to past appropriations, past state revenues and NEA grants, some demographic variables, party control of state government, and state budgeting rules. Federal funds attract, rather than crowd out, state appropriations. While the influence of some demographic variables may be shifting over time, income growth continues to explain much of SAA appropriations. [ABSTRACT FROM AUTHOR]

Despite the lack of a clear definition of the concept, “cultural diversity” has remained a core issue for more than a decade (WTO, UNESCO, etc.). The aim of this paper is to begin to fill this gap. We argue that cultural diversity is a multi-dimensional concept and that accurate metrics must rely on three criteria: variety, balance and disparity. We also stress that supplied and consumed diversity have to be distinguished. We apply this set of multiple measures of diversity to publishing data for France over the period 1990–2003. Our main result is that the situation of the publishing industry in terms of cultural diversity is highly dependent on the dimension considered. Hence, diversity increases when variety is the sole consideration, whereas taking balance or disparity into account leads to the opposite conclusion. This issue raises a series of questions about the use of diversity measures in a policy debate concerned with furthering cultural diversity. [ABSTRACT FROM AUTHOR]

UNESCO has given its Director General a mandate to draft a convention on protecting the diversity of cultural contents and artistic expressions by the fall of 2005. Proponents of the convention view commitments made by countries in trade agreements as weakening their ability to preserve and promote cultural diversity. We review the existing draft wording for a convention, developed before the official involvement of UNESCO, by the INCP, an association representing cultural ministries in favour of insulating their cultural policies from liberalization, and conclude that it fails to meet the necessary conditions for an enforceable rules-based international agreement. In the INCP text, countries are given rights to introduce policies that promote a self-defined cultural diversity. The only obligation is to balance their interests with those of others. No standard of adjudication for balance is offered nor any effective dispute resolution mechanism developed. The ultimate purpose of the initiative may be to form a negotiating bloc within the WTO, but the disparate interests of its members and the lack of tangible benefits from the Convention reduce the credibility of bargaining solidarity. In contrast, the WTO provides a flexible and effective forum for negotiating maintenance of current policy options at a cost of making concessions in other sectors. [ABSTRACT FROM AUTHOR]

Comments on the draft Convention on Cultural Diversity published by the International Network of Cultural Policy. Some remarks about the definition of diversity; Economic grounds of a policy favoring diversity; Relation Between World Trade Organization and United Nations Educational, Scientific and Cultural Organization policies.

Comments on the United Nations Educational, Scientific and Cultural Organization's draft document for the protection of diversity of cultural elements and artistic expressions. Arguments for protection of local cultural goods; Objective of cultural diversity to promote cultural expressions of minority culture.

Focuses on the relationship between international economic integration and the plurality of cultural identities. Review of the draft Convention on Cultural Diversity published by the International Network of Cultural Policy; Impact of draft on the evolution of the trading system and World Trade Organization rules.

The article describes the application of contingent valuation to estimate the value of the benefits that the Australian community derives from the mandatory transmission of Australian programs by television stations. This application of contingent valuation to estimate cultural benefits offers an insight on the potential for a wider application of the methodology to evaluate cultural policy instruments. The study found that a majority of Australians support regulation of the domestic content of television programs and considers the value of the related benefits to be commensurate with the cost of supplying domestic programming. [ABSTRACT FROM AUTHOR]

This paper considers the communitarian critique of the method of economics, especially in regard to its methodological individualism, with reference in particular to cultural economics. It asks whether cultural goods can be modelled in a meaningful way under the usual assumptions in neoclassical economics about individual economic agents. Special attention is paid to Charles Taylor's critique of ''atomism'', and his suggestion that some goods are ''irreducibly social''. The implications of the critique for (1) public funding of the arts, and (2) copyright policy, are considered. [ABSTRACT FROM AUTHOR]

Neglected aspects of state support for the arts are discussed through posing two questions. First, “What kind of state is providing that support?” The extent and type of public support and its effects on the arts crucially depends on whether the state is centralised or decentralised, and on whether it is authoritarian or democratic. Second, “How is artistic creativity fostered?” ”Institutional creativity” is best supported by attributing a large role to the market and market-like institutions. “Personal creativity” hinges on intrinsic motivation, which may be crowded out by different types of public support. Important consequences for the public support of the arts follow. [ABSTRACT FROM AUTHOR]

Indirect aid to the arts is an area of state support in which there has been considerable recent innovation and experimentation. This paper focuses on examples of tax-based indirect aid schemes drawn from a wide variety of national contexts and tax regimes. These examples are considered in the light of six propositions about the applicability and desirability of tax-based indirect aid mechanisms. Finally, these observations are set in the context of the broader discussion concerning the primary and ancillary functions of tax law. The paper concludes with a plea for a more coordinated approach to the study of tax-based incentives to facilitate further comparative research and suggests which research questions might be of most interest. [ABSTRACT FROM AUTHOR]

Using the neo-classical justifications for government support of the arts that Dick Netzer discussed in The Subsidized Muse as a starting point, the article contends that market failure is not an useful concept to understand and explain cultural policies and the degree of government involvement, particularly when viewed from a comparative perspective. The basic fault is that historical- institutional arrangements and the role of non-state actors in the formation of cultural policies are not taken into account. Discussing some aspects of the institutional framework in the development of French, Swedish and U.S. cultural policies, the article concludes with a call for the use of neo-institutionalist perspectives in analyzing government intervention in the arts field. [ABSTRACT FROM AUTHOR]