IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i10p1750-d113478.html
   My bibliography  Save this article

Sponsorship for the Sustainability of Historical-Architectural Heritage: Application of a Model’s Original Test Finalized to Maximize the Profitability of Private Investors

Author

Listed:
  • Luigi Dolores

    (Department of Civil Engineering, University of Salerno, Via Giovanni Paolo II, 132, 84084 Fisciano SA, Italy)

  • Maria Macchiaroli

    (Department of Civil Engineering, University of Salerno, Via Giovanni Paolo II, 132, 84084 Fisciano SA, Italy
    The authors contributed equally to this work.)

  • Gianluigi De Mare

    (Department of Civil Engineering, University of Salerno, Via Giovanni Paolo II, 132, 84084 Fisciano SA, Italy
    The authors contributed equally to this work.)

Abstract

This paper deals with private sponsorship as a tool for the redevelopment of Italy’s vast wealth of historical-architectural public heritage sites. Italian law provides for the stipulation of sponsorship agreements by and between public sector agencies or entities (which need financial resources to restore or re-qualify property) and private sector investors (which guarantee the capital sought by the public sector in exchange for significant returns on their investments) raising various economic issues, particularly in connection with the profitability thresholds for private sector investors in return for the public sector’s use of their financial resources. In this paper, the authors focus on how private sector investors determine how much of their businesses turnover constitutes the optimal percentage level of overall income that may be invested in sponsorships to maximize business profitability. For this purpose, a model based on past works on the subject (Bucci et al., 2003) has been chosen by the authors. Such model gives a solution for verifying a sponsorship’s profitability. This model is static and is applicable to single-product companies that invest in sponsorships, under the theories of monopolistic competition and of Cobb-Douglas production function. Our objectives are to present this model, explaining in detail the mathematical steps, simplifying the model where possible in order to reduce the levels of complexity in its application, and finally to apply it to real case scenarios of cultural sponsorships.

Suggested Citation

  • Luigi Dolores & Maria Macchiaroli & Gianluigi De Mare, 2017. "Sponsorship for the Sustainability of Historical-Architectural Heritage: Application of a Model’s Original Test Finalized to Maximize the Profitability of Private Investors," Sustainability, MDPI, vol. 9(10), pages 1-16, September.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:10:p:1750-:d:113478
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/10/1750/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/10/1750/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Antonio Nesticò & Maria Macchiaroli & Ornella Pipolo, 2015. "Costs and Benefits in the Recovery of Historic Buildings: The Application of an Economic Model," Sustainability, MDPI, vol. 7(11), pages 1-16, November.
    2. Alberto Bucci & Massimiliano Castellani & Paolo Figini, 2003. "L’investimento in sponsorizzazione delle imprese: un’analisi economica in termini statici e dinamici," Rivista di Politica Economica, SIPI Spa, vol. 93(3), pages 183-224, May-June.
    3. Douglas, Paul H, 1976. "The Cobb-Douglas Production Function Once Again: Its History, Its Testing, and Some New Empirical Values," Journal of Political Economy, University of Chicago Press, vol. 84(5), pages 903-915, October.
    4. Gianluigi De Mare & Maria Fiorella Granata & Antonio Nesticò, 2015. "Weak and Strong Compensation for the Prioritization of Public Investments: Multidimensional Analysis for Pools," Sustainability, MDPI, vol. 7(12), pages 1-17, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luigi Dolores & Maria Macchiaroli & Gianluigi De Mare, 2021. "Sponsorship’s Financial Sustainability for Cultural Conservation and Enhancement Strategies: An Innovative Model for Sponsees and Sponsors," Sustainability, MDPI, vol. 13(16), pages 1-28, August.
    2. Marta Bottero & Chiara D’Alpaos & Alessia Marello, 2020. "An Application of the A’WOT Analysis for the Management of Cultural Heritage Assets: The Case of the Historical Farmhouses in the Aglié Castle (Turin)," Sustainability, MDPI, vol. 12(3), pages 1-17, February.
    3. Luigi Dolores & Maria Macchiaroli & Gianluigi De Mare, 2020. "A Dynamic Model for the Financial Sustainability of the Restoration Sponsorship," Sustainability, MDPI, vol. 12(4), pages 1-27, February.
    4. Erick Kauffmann & Jesús Peral & David Gil & Antonio Ferrández & Ricardo Sellers & Higinio Mora, 2019. "Managing Marketing Decision-Making with Sentiment Analysis: An Evaluation of the Main Product Features Using Text Data Mining," Sustainability, MDPI, vol. 11(15), pages 1-19, August.
    5. Marta Bottero & Chiara D’Alpaos & Alessandra Oppio, 2019. "Ranking of Adaptive Reuse Strategies for Abandoned Industrial Heritage in Vulnerable Contexts: A Multiple Criteria Decision Aiding Approach," Sustainability, MDPI, vol. 11(3), pages 1-18, February.
    6. Luigi Dolores & Maria Macchiaroli & Gianluigi De Mare, 2022. "Financial Impacts of the Energy Transition in Housing," Sustainability, MDPI, vol. 14(9), pages 1-17, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Antonio Nesticò & Piera Somma, 2019. "Comparative Analysis of Multi-Criteria Methods for the Enhancement of Historical Buildings," Sustainability, MDPI, vol. 11(17), pages 1-19, August.
    2. Fabrizio Battisti & Maria Rosaria Guarini & Anthea Chiovitti, 2017. "The Assessment of Real Estate Initiatives to Be Included in the Socially-Responsible Funds," Sustainability, MDPI, vol. 9(6), pages 1-19, June.
    3. Luigi Dolores & Maria Macchiaroli & Gianluigi De Mare, 2020. "A Dynamic Model for the Financial Sustainability of the Restoration Sponsorship," Sustainability, MDPI, vol. 12(4), pages 1-27, February.
    4. Massimiliano Bencardino & Antonio Nesticò, 2017. "Demographic Changes and Real Estate Values. A Quantitative Model for Analyzing the Urban-Rural Linkages," Sustainability, MDPI, vol. 9(4), pages 1-14, March.
    5. Costa, Marcelo Azevedo & Lopes, Ana Lúcia Miranda & de Pinho Matos, Giordano Bruno Braz, 2015. "Statistical evaluation of Data Envelopment Analysis versus COLS Cobb–Douglas benchmarking models for the 2011 Brazilian tariff revision," Socio-Economic Planning Sciences, Elsevier, vol. 49(C), pages 47-60.
    6. Xu, Xianghui & Chen, Yingshan & Zhou, Yan & Liu, Wuyuan & Zhang, Xinrui & Li, Mo, 2023. "Sustainable management of agricultural water rights trading under uncertainty: An optimization-evaluation framework," Agricultural Water Management, Elsevier, vol. 280(C).
    7. Jael, Paul, 2019. "Does Marginal Productivity Mean Anything in Real Economic Life ?," MPRA Paper 97968, University Library of Munich, Germany, revised Jan 2020.
    8. Fanglin LI & Michael APPIAH & Regina Naa Amua DODOO, 2020. "The Effects Of Technology And Labor On Growth In Emerging Countries," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 12(2), pages 39-47, June.
    9. Saeed P. Langarudi & Carlos G. Silva & Alexander G. Fernald, 2021. "Measure more or report faster? Effect of information perception on management of commons," System Dynamics Review, System Dynamics Society, vol. 37(1), pages 72-92, January.
    10. Julien Forder & Florin Vadean & Stacey Rand & Juliette Malley, 2018. "The impact of long‐term care on quality of life," Health Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 43-58, March.
    11. Montresor, Sandro & Vezzani, Antonio, 2015. "The production function of top R&D investors: Accounting for size and sector heterogeneity with quantile estimations," Research Policy, Elsevier, vol. 44(2), pages 381-393.
    12. Patalinghug Jason C., 2019. "Estimation of a Production Function for Philippine Retail Stores," Economics, Sciendo, vol. 7(1), pages 69-79, June.
    13. Roman G. Smirnov & Kunpeng Wang, 2019. "The Cobb-Douglas production function revisited," Papers 1910.06739, arXiv.org, revised Oct 2019.
    14. Bravo-Ureta, Boris E. & Rieger, Laszlo & Quiroga, Ricardo E., 1990. "Fixed Effects and Stochastic Frontier Estimates of Firm-Level Technical Efficiency," 1990 Annual meeting, August 5-8, Vancouver, Canada 270867, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Yiping Zhang & Olaf Weber, 2022. "Investors’ Moral and Financial Concerns—Ethical and Financial Divestment in the Fossil Fuel Industry," Sustainability, MDPI, vol. 14(4), pages 1-12, February.
    16. Hasanov, Fakhri J. & Aliyev, Ruslan & Taskin, Dilvin & Suleymanov, Elchin, 2023. "Oil rents and non-oil economic growth in CIS oil exporters. The role of financial development," Resources Policy, Elsevier, vol. 82(C).
    17. Nie, Pu-yan & Yang, Yong-cong, 2016. "Effects of energy price fluctuations on industries with energy inputs: An application to China," Applied Energy, Elsevier, vol. 165(C), pages 329-334.
    18. Fakhri J. Hasanov & Jeyhun I. Mikayilov & Sabuhi Yusifov & Khatai Aliyev & Samra Talishinskaya, 2019. "The role of social and physical infrastructure spending in tradable and non-tradable growth," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 13(1), March.
    19. Kui-Wai Li, 2018. "Analyzing The Tfp Performance Of Chinese Industrial Enterprises," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(05), pages 1263-1284, December.
    20. Francesco Calabrò & Lucia Della Spina, 2019. "The Public–Private Partnership for the Enhancement of Unused Public Buildings: An Experimental Model of Economic Feasibility Project," Sustainability, MDPI, vol. 11(20), pages 1-25, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:9:y:2017:i:10:p:1750-:d:113478. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.