Museums for ex situ tangible heritage conservation: A neo-institutional analytical and empirical economic analysis

As a first attempt to position the role of museums in land use planning, this paper modifies a neo-institutional economic perspective to canvass the economic advantages of a museum as a form of real property in a community. It explains that a museum, outdoor or indoor, as a derived demand for real property because selected ex situ heritage items need space to concentrate. Such concentration not only reduces the transaction costs of searching for users but also accumulates value by being positioned at a fixed location, as in the case of a heritage building as in situ heritage, so that it may even become a new heritage site (if not also a heritage building) over a period of time. This is demonstrated by the case of London Bus Museum, which stands in sharp contrast to a hidden private collection of retired buses in Hong Kong. An empirical test of the effects on values of neighbouring property of a cattle depot/slaughter house reused as an art museum was conducted to shed light on the economic advantages of a museum. This paper expands the understanding of curating to encompass the formation of a museum and the gaining of heritage value for the museum itself. Some land use implications are discussed, particularly that museums should be purpose-built rather than being accommodated in heritage buildings.