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The effects of cultural policy on nascent cultural entrepreneurship: A Bayesian nonparametric approach to longitudinal mediation

Author

Listed:
  • Andrej Srakar

    (Institute for Economic Research, Faculty of Economics, University of Ljubljana, Slovenia)

  • Marilena Vecco

    (CEREN, Burgundy School of Business – Universite Bourgogne Franche-Comte, France)

Abstract

Despite the topic of nascent entrepreneurship receiving quite extent in coverage in the scientific literature there is very few, if any, knowledge on the characteristics of nascent firms in the cultural and creative sector. In this article we use Amadeus database for a sample of firms from 28 European Union countries in the period 2007-2016, to study the effects of cultural policy on nascent entrepreneurship. We model the effects as a mediation problem and show that while cultural policy has an effect on general performance of cultural firms it is mediated through its indirect effect on nascent cultural and creative firms and mediation happens with time delay. This finding is robust to numerous cultural policy variables, definitions of nascent entrepreneurship, performance indicators and model specifications. The article also implements and discusses a Bayesian nonparametric (BNP) approach to longitudinal mediation analysis (using Bayesian additive regression trees used on cross-lagged panel modelling of the Baron-Kenny approach to mediation) which is to our knowledge the first application of BNP in longitudinal mediation in statistical and econometric literature. We conclude by policy and research recommendations and reflections.

Suggested Citation

  • Andrej Srakar & Marilena Vecco, 2019. "The effects of cultural policy on nascent cultural entrepreneurship: A Bayesian nonparametric approach to longitudinal mediation," ACEI Working Paper Series AWP-01-2019, Association for Cultural Economics International, revised Feb 2019.
    • Handle: RePEc:cue:wpaper:awp-01-2019
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    References listed on IDEAS

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

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