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European Capitals of Culture and Life Satisfaction

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  • Lasse Steiner
  • Bruno S. Frey
  • Simone Hotz

Abstract

This paper analyzes whether hosting the most prestigious European cultural event, the European Capital of Culture, has an impact on regional economic development or the life satisfaction of the local population. Concerning the economic impact, we show that European Capitals are hosted in regions with above average GDP per capita, but do not causally affect the economic development in a significant way. Even a positive impact on GDP per capita would not imply a positive impact on individual utility or social welfare of the regional population. Surprisingly, using difference-in-difference estimations, a negative effect on the well-being of the regional population is found during the event. Since no effect is found before the event, reverse causality and positive anticipation can be ruled out. The negative effect during the event might result from dissatisfaction with the high levels of public expenditure, transport disruptions, general overcrowding or an increase in housing prices.

Suggested Citation

  • Lasse Steiner & Bruno S. Frey & Simone Hotz, 2013. "European Capitals of Culture and Life Satisfaction," CREMA Working Paper Series 2013-07, Center for Research in Economics, Management and the Arts (CREMA).
    • Handle: RePEc:cra:wpaper:2013-07
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    1. European Capitals of Culture and Life Satisfaction
      by maximorossi in NEP-LTV blog on 2013-09-25 17:14:36

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    Cited by:

    1. Alan Piper, 2015. "Europe’s Capital Cities and the Happiness Penalty: An Investigation Using the European Social Survey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 123(1), pages 103-126, August.
    2. Piper, Alan T., 2018. "Adult life satisfaction: largely (though not wholly) contemporaneous? A System General Method of Moments dynamic panel analysis," MPRA Paper 85601, University Library of Munich, Germany.
    3. John V Winters & Yu Li, 2017. "Urbanisation, natural amenities and subjective well-being: Evidence from US counties," Urban Studies, Urban Studies Journal Limited, vol. 54(8), pages 1956-1973, June.
    4. Piper, Alan T., 2014. "The Benefits, Challenges and Insights of a Dynamic Panel assessment of Life Satisfaction," MPRA Paper 59556, University Library of Munich, Germany.
    5. Piper, Alan T., 2013. "Happiness, Dynamics and Adaptation," MPRA Paper 52342, University Library of Munich, Germany.
    6. Jen D Snowball & Geoff G Antrobus, 2021. "Festival value in multicultural contexts: City festivals in South Africa," Tourism Economics, , vol. 27(6), pages 1256-1275, September.
    7. Olivier Gergaud & Victor Ginsburgh, 2016. "Evaluating the Economic Effects of Cultural Events," Working Papers ECARES ECARES 2016-24, ULB -- Universite Libre de Bruxelles.
    8. Jingan Chen & Chengdong Yi & Yourong Wang & Tianyu Bi, 2022. "Do Honored Cities Achieve a Sustainable Development? A Quasi-Natural Experimental Study Based on “National Civilized City” Campaign in China," Sustainability, MDPI, vol. 14(24), pages 1-18, December.
    9. Pedro Gomes & Alejandro Librero-Cano, 2018. "Evaluating three decades of the European Capital of Culture programme: a difference-in-differences approach," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 42(1), pages 57-73, February.
    10. Andrej Srakar & Marilena Vecco, 2017. "Ex-ante versus ex-post: comparison of the effects of the European Capital of Culture Maribor 2012 on tourism and employment," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 41(2), pages 197-214, May.
    11. Piper, Alan T., 2014. "An Investigation into Happiness, Dynamics and Adaptation," MPRA Paper 57778, University Library of Munich, Germany.
    12. Suzana Žilič Fišer & Ines Kožuh, 2019. "The Impact of Cultural Events on Community Reputation and Pride in Maribor, The European Capital of Culture 2012," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(3), pages 1055-1073, April.
    13. Qiao Chen & Yan Mao, 2021. "Do City Honors Increase Tourism Economic Growth? A Quasi-Natural Experimental Research Study Based on “Civilized City” Selection in China," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    14. Miroslav D. Vujičić & Uglješa Stankov & Vanja Pavluković & Ivana Štajner-Papuga & Sanja Kovačić & Jovana Čikić & Nemanja Milenković & Tamara Zelenović Vasiljević, 2023. "Prepare for Impact! A Methodological Approach for Comprehensive Impact Evaluation of European Capital of Culture: The Case of Novi Sad 2022," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(2), pages 715-736, January.
    15. Ron Boschma & Simona Iammarino & Raffaele Paci & Jordy Suriñach & Jasper f. Meekes & Dorina M. Buda & Gert De Roo, 2017. "Leeuwarden 2018: Complexity of Leisure-Led Regional Development in A European Capital of Culture," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 108(1), pages 129-136, February.
    16. Victoria Ateca-Amestoy & Anna Villarroya & Andreas Joh. Wiesand, 2021. "Heritage Engagement and Subjective Well-Being in the European Union," Sustainability, MDPI, vol. 13(17), pages 1-16, August.
    17. Olivier Gergaud & Victor Ginsburgh, 2019. "Using Google Trends to Evaluate Cultural Events," Working Papers ECARES 2019-24, ULB -- Universite Libre de Bruxelles.
    18. Alan Piper, 2018. "Adult life satisfaction largely (though not wholly) contemporaneous," Discussion Papers 028, Europa-Universität Flensburg, International Institute of Management.
    19. Bartosz Wilczek, 2018. "Media use and life satisfaction: the moderating role of social events," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(2), pages 157-184, June.

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    More about this item

    Keywords

    Life Satisfaction; Mega-Events; Culture; European Capital of Culture;
    All these keywords.

    JEL classification:

    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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