Measuring the Value of Culture (eBook)

Thanks and Acknowledgements 6
Table of Contents 7
Introduction 10
References 14
1 The Arts, Economics and Valuation 15
1.1 Defining Culture and the Arts 15
1.2 Arguments in Favour of Public Support for the Arts 17
1.2.1 Demand Side Arguments 18
1.2.2 Supply Side Arguments: Baumol’s Cost Disease 24
1.2.3 New Theories of Cultural Capital 28
1.3 Valuing Cultural Goods and the Scope of Economics 31
1.4 Conclusions 36
References 38
2 Using Economic Impact Studies to Value the Arts 41
2.1 The Benefits of Using Economic Impact Studies 43
2.2 The Dangers of Using Economic Impact Studies 46
2.3 Conclusions 52
References 53
3 Calculating Economic Impact 55
3.1 Direct Net Economic Impact 56
3.1.1 Data Collection Methods and Sampling 58
3.1.2 The Area of Study and Local Spectators 62
3.1.3 Determining Visitor Numbers 66
3.1.4 Producers, Sponsors, Vendors and the Media 69
3.1.5 Supply Constraints and Other Costs 71
3.2 Indirect Impact 74
3.3 Total Economic Impact 79
3.4 Conclusions 81
References 82
4 The Contingent Valuation Method 85
4.1 Examples of WTP Studies in Cultural Economics 87
4.2 The WTP Method and the Exxon Controversy 93
4.3 Criticisms and Defence of the CV Method 95
4.3.1 Hypothetical Markets and the “Free Rider” Problem 95
4.3.2 The Embedding Effect and “Warm Glow” Hypothesis 106
4.3.3 Disparities Between WTP and WTP 115
4.3.4 The Mixed Good Bias 121
4.3.5 Other Categorical Critiques of the CV Method 125
4.4 Conclusions 128
Appendix 4.1 129
References 132
5 Using Willingness to Pay Studies to Value Cultural Goods 139
5.1 Data Collection and Sampling 139
5.2 Questionnaire Structure in WTP Studies 143
5.3 Opinions and Externalities: Measuring Non-use Values 144
5.4 Attendance, Spending and Earnings: Measuring Use Values 147
5.5 The WTP Question 149
5.5.1 The Provision of Information and Information Bias 150
5.5.2 WTP Question Elicitation Format 156
5.5.3 Detecting Biased Responses: Follow-up Questions and Sureness Measures 161
5.6 Socio-demographics 168
5.7 Validity and Reliability Tests 171
5.8 Conclusions 175
Appendix 5.1 177
References 180
6 The Choice Experiment Method and Use 184
6.1 Examples of Choice Experiments in Cultural Economics 185
6.2 The Underlying Theory of Choice Experiments 192
6.3 A Comparison between Choice Experiments and WTP Studies 194
6.4 Choosing Attributes and Levels 197
6.5 Potential Forms of Bias in Choice Experiments 202
6.5.1 Status Quo and Endowment Effects 203
6.5.2 Complexity and Choice Consistency 204
6.5.3 Independent Valuation and Summation 206
6.6 Interpreting Results 208
6.6.1 Odds Interpretation and Willingness to Pay 208
6.6.2 Including Socio-demographic Variables 211
6.6.3 Welfare Changes and Market Acceptability 215
6.7 Combining Methods 217
6.8 Conclusions 217
Appendix Table 6.1 219
References 220
7 Conclusions 223
7.1 A Case Study of the South African National Arts Festival 226
7.2 Conclusions 230
References 232
Index 233