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Beggar-thy-neighbor in Art Consumption: Evidence from the “Bel Paese”

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  • Nadia Campaniello
  • Matteo Richiardi

Abstract

This paper contributes to the relatively underdeveloped empirical literature on the demand for culture, testing whether the existence of cultural goods located in one region increases the demand for cultural goods in other regions. The measurement of such spillovers is important to determine the efficient allocation of cultural resources. We develop an empirical test based on aggregate data on the demand and supply of tourism in twenty Italian regions, that we complement with survey data collected data on museums’ visitors in the city of Turin (Piedmont, Italy). We find strong evidence that local supply of culture stimulates the demand for foreign cultural goods, which is coherent with the Theories of Addiction and of “Learning by Consuming.” Given our data the two theories are observationally equivalent. The positive spillovers are large and call for coordinated interventions among the many local governments that finance the supply of cultural attractions.

Suggested Citation

  • Nadia Campaniello & Matteo Richiardi, 2011. "Beggar-thy-neighbor in Art Consumption: Evidence from the “Bel Paese”," LABORatorio R. Revelli Working Papers Series 116, LABORatorio R. Revelli, Centre for Employment Studies.
  • Handle: RePEc:cca:wplabo:116
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    File URL: http://www.laboratoriorevelli.it/_pdf/wp116.pdf
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    References listed on IDEAS

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    1. Throsby, David, 1994. "The Production and Consumption of the Arts: A View of Cultural Economics," Journal of Economic Literature, American Economic Association, vol. 32(1), pages 1-29, March.
    2. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    3. Donata Favaro & Carlofilippo Frateschi, 2007. "A discrete choice model of consumption of cultural goods: the case of music," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 31(3), pages 205-234, September.
    4. Louis Lévy-Garboua & Claude Montmarquette, 2002. "The Demand for the Arts," CIRANO Working Papers 2002s-10, CIRANO.
    5. Witt, Stephen F. & Witt, Christine A., 1995. "Forecasting tourism demand: A review of empirical research," International Journal of Forecasting, Elsevier, vol. 11(3), pages 447-475, September.
    6. Louis Lévy-Garboua & Claude Montmarquette, 1996. "A microeconometric study of theatre demand," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 20(1), pages 25-50, March.
    7. Paulo Brito & Carlos Barros, 2005. "Learning-by-Consuming and the Dynamics of the Demand and Prices of Cultural Goods," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 29(2), pages 83-106, May.
    8. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
    9. Elena Bellini & Ugo Gasparino & Barbara Del Corpo & William Malizia, 2007. "Impact of Cultural Tourism upon Urban Economies: An Econometric Exercise," Working Papers 2007.85, Fondazione Eni Enrico Mattei.
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