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Cultural Goods Consumption and Cultural Capital

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  • Rüdiger Pethig

    ()

  • Sao-Wen Cheng

Abstract

Cultural capital is assumed to benefit all members of society. It is built up by the aggregate consumption of cultural goods and is diminished through depreciation. In the no-policy market economy, consumers tend to ignore the beneficial external effects of their cultural good consumption on the other consumers (and on themselves) through augmenting cultural capital. Cultural goods will be less consumed and, as a result, cultural capital will be underprovided. The efficient allocation is shown to be restored by an appropriate subsidy on cultural goods that stimulates the consumers´ demand for cultural goods and thus promotes the accumulation of cultural capital.

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File URL: http://www.wiwi.uni-siegen.de/vwl/repec/sie/papers/86-00.pdf
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Bibliographic Info

Paper provided by Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht in its series Volkswirtschaftliche Diskussionsbeiträge with number 86-00.

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Length: 22 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:sie:siegen:86-00

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  1. David Throsby, 1999. "Cultural Capital," Journal of Cultural Economics, Springer, vol. 23(1), pages 3-12, March.
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Cited by:
  1. Finocchiaro Castro Massimo, 2004. "Cultural Education and the Voluntary Provision of Cultural Goods: An Experimental Study," Experimental 0404002, EconWPA.
  2. Productivity Commission, 2009. "Restrictions on the Parallel Importation of Books," Research Reports, Productivity Commission, Government of Australia, number 34.

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