Contingent Valuation and Cultural Resources: A Meta-Analytic Review of the Literature

Contingent valuation methodology (CVM) has been increasingly applied to cultural resources. CVM employs survey methods to gather stated preference information, which can be used to estimate economic values of various cultural resources and projects. Although popular in other fields, the application of CVM in the cultural arena is relatively recent. This article summarizes this growing body of empirical literature and its range of findings. A meta-analysis gives a statistical view of the ``state of the art' of the literature. This preliminary analysis sheds light on the consistency and validity of the use of this method in cultural applications.     

The Regrettable Necessity of Contingent Valuation

Ordinary markets allow parties, not the state, to value property and projects. But they do not account for subjective value in such traditional contexts as condemnation. An awareness of these nonmarket values helps overcome any categorical opposition to the use of the contingent valuation method (CVM) to value cultural and environmental resources. But accurate CVM should measure all values, positive or negative, tononowners; it should apply generally to any substitute projects; and it should seek to account for diminishing marginal value of additional resource units. CVM should be used only to aggregate nonmarket preferences, not to skew the political debate to cultural or environmental objectives.     

Contingent Valuation and Semiparametric Methods: A Case Study of the National Museum of Sculpture in Valladolid, Spain

Research on cultural economics is very interested in the economic valuation of non-market goods, particularly in the field ofcultural heritage where contingent valuation techniques are currently being used with both parametric and non-parametric statistical methods to estimate the willingness to pay for cultural goods. In the literature analysed, the number of studies using semiparametric methods, however, is very limited. Our analysis is intended to help fill this gap by offering a parametric, non-parametric and semiparametric economic valuation of the National Museum of Sculpture (Museo Nacional de Escultura), located in Valladolid,Spain. In addition, we also gain insight on a controversial issue affecting most European museums, particularly those located in Latin countries: the role voluntary donations might play in the funding of public museums.     

Determining the Value of Cultural Goods: How Much (or How Little) Does Contingent Valuation Tell Us?

Contingent valuation methods (CVM) are now well established as a means of measuring the nonmarket demand for cultural goods and services. When combined with valuations provided through market processes (where relevant), an overall assessment of the economic value of cultural commodities can be obtained. Within a neoclassical framework, such assessments are thought to provide a complete picture of the value of cultural goods. But are there aspects of the value of cultural goods which are not fully captured, or not captured at all, within such a model? This paper argues that CVM provides an incomplete view of the nonmarket value of cultural goods, and that alternative measures need to be developed to provide a fuller account.     

Valuing the Benefits of Cleaning Lincoln Cathedral

This paper summarises a contingent valuation study of willingness to pay forcleaning Lincoln Cathedral. A randomsample of the inhabitants of the city of Lincoln and the surrounding area wasquestioned as to their willingness topay for a change in the frequency of a hypothetical cleaning cycle from 40years to 10 years. This change wasillustrated by photographs which showed the same aspects of the Cathedralhalf-way through the two cleaning cycles.Individuals were also asked questions regarding their attitudes towards airpollution in general and its impact on theCathedral in particular. It was found that household willingness to pay isbest predicted by disposable income anda variable indicating distance from the site. Estimates of mean willingnessto pay range from £ 15 to £ 23 perhousehold per annum for those living Lincolnshire. Aggregating these valuesover the number of households inLincolnshire suggests that the annual damage inflicted by air pollution on theappearance of the building so far assoiling is concerned is valued between £ 0.4 m and £ 0.6 m.Different solutions to the problem of starting point biaswere explored and are shown to yield similar estimates of willingness to pay.     

Contingent Valuation of a Cultural Public Good and Policy Design: The Case of ``Napoli Musei Aperti'

The aim of the paper is twofold: to report on theapplication of a contingent valuation survey todetermine the value to the Naples population ofmaintaining ``Napoli Musei Aperti', a cultural publicgood provided by the city of Naples, and to exploresome alternative schemes of cultural policy. The paperis divided in two parts. The first presents someresults of the contingent valuation study. The seconddiscusses the use of the contingent valuation as apolicy instrument in the public cultural sector.     

The Willingness-to-Pay for the Royal Theatre in Copenhagen as a Public Good

In this paper some of the results of a Contingent Valuation (CV)-Study of the Royal Theatre in Copenhagen, Denmark, are presented. The estimated aggregated willingness-to-pay (WTP) for the Royal Theatre through taxes shows that the Danish population wants to pay at least as much as the theatre receives in public subsidies. The visitors comprise only about 7 per cent of the total population, but the non-users' WTP is quite substantial which is the interesting point. It means that the non-users are willing to pay an option price and that the Royal Theatre has non-use value. This revised version was published online in August 2006 with corrections to the Cover Date.     

Revisiting tax subsidies for cultural institutions

This paper was presented at the symposium dedicated to the 25th anniversary of the publication of Patrons Despite Themselves: Taxpayers and Arts Policy (Feld et al. 1983), held by the Association for Cultural Economics International, Boston, June 2008. Patrons Despite Themselves raised and tried to answer a number of important questions of policy concerning indirect government support for the arts. These questions have continued salience for what we see in our museums and hear in our concert halls. The primary source of federal indirect aid in the U.S. continues to derive from the deduction in the federal income tax for contributions to not-for-profit cultural institutions. On the other hand, there has been a series of recent challenges to the tax-exempt status of charitable institutions.

Who pays? Who benefits? Who decides?

This paper was presented at the symposium dedicated to the 25th anniversary of the publication of Patrons Despite Themselves: Taxpayers and Arts Policy (Feld et al. 1983), held by the Association for Cultural Economics International, Boston, June 2008. It considers alternative means of providing indirect tax-based state support of the arts, such as the use of tax credits as opposed to tax deductions for charitable contributions, matching grants, and support applied to specific projects. It also considers the problem of broad-based changes to tax policy that have unintended consequences for arts organizations.      

Arts policy research for the next 25 years: a trajectory after <Emphasis Type="Italic">Patrons Despite Themselves</Emphasis>

This article was presented at the symposium dedicated to the twenty-fifth anniversary of the publication of Patrons Despite Themselves: Taxpayers and Arts Policy (Feld et al., 1983), held by the Association for Cultural Economics International, Boston, June 2008. It considers “big questions” in arts policy that promise intellectual and social payoff if approached in the spirit that animated the effort behind Patrons Despite Themselves, with special attention to issues that economists might illuminate, namely: (1) Waste of resources; (2) A workable business model for digital media; (3) Increasing the value created through amateur participation; (4) Withdrawal of elites, especially economic elites, from their historic participation in arts governance and support; and (5) Fragmentation of collective patrimony. The associated questions are the same in each case: Why is this happening? Is there a market failure or equity justification for government action? What policies would help?     

Art for the Masses? Justification for the Public Support of the Arts in Developing Countries – Two Arts Festivals in South Africa

In the New South Africa, as in other developing countries, the equitable distribution of public resources is a priority. The case for public support of the arts is thus difficult to make because it has been shown and borne out by South African research, that arts audiences tend to represent the better educated, more prosperous minority of society, not the majority of the very poor, mainly African-origin population. Using data from willingness to pay studies conducted at two South African arts festivals, this paper shows that, when the positive externalities provided by the arts are included in their valuation, it can be shown that both high and low income earners benefit. However, as suggested by Seaman (2003), it is also found that some of what the WTP figure is capturing is current and expected future economic benefit from the event.     

The Supply of Arts Labour : Towards a Dynamic Approach

Earlier work on the supply of labour of artists has shown that, whenever workers derive satisfaction from the process of work, which is usually the case for artists, some traditional results are reversed. As their proponents make clear this analysis is essentially static, as it does not take into account the intertemporal dimension of the supply of labour. The paper argues that to provide such a dynamic analysis three routes are available: the human capital approach, the household production approach and the evolutionary approach. The paper, therefore, is aimed at discussing the adequacy of various theoretical approaches to the treatment of a specific question.     

The Impact of the National Endowment for the Arts in the United States: Institutional and Sectoral Effects on Private Funding

This paper examines the impact of the National Endowment for the Arts on private donations to the arts. The aim of the analysis is to assess whether public funding generates a crowding effect on private giving. We distinguish between institutional and sectoral crowding phenomena and discuss their possible implications.We used both a qualitative approach and an econometric model to estimate the effect of NEA introduction and appropriations on donations. Our results suggest that at the institutional level NEA grants do not generally induce donations to recipients while at the sectoral level appropriations and private giving are independent. The introduction of the agency appears to have caused a decrease in donations.     

Demand for Ballet: A Non-Parametric Analysis of the 1995 Royal Ballet Summer Season

Attendance figures for individual seat categories during the 1995 Royal Ballet Summer Season are analysed using a non-parametric median technique. For three out of five categories, demand for full-length ballet turns out to be significantly downward-sloping. The (point) estimates suggest that during the period of observation substantial margins for price cuts existed which would have increased both attendance and revenue.     

On the Possibility of Organ Markets and the Performativity of Economics

Callon's (1998) ‘performativity thesis’ encourages us to consider how the boundaries of the economy are negotiated. This paper explores one such discussion: the contributions of economics to the debates over the introduction of markets for transplant organs. The paper pays particular attention to the normative aspects of economic valuation. It examines the philosophical antecedents of economic contributions to the debate, notes the rhetorical and linguistic power of economic calculation and then focuses on three distinct sets of calculations concerning the value of a transplant kidney: a contingent valuation calculation, a risk-premia based calculation, and a cost-efficiency simulation. In each case, it shows that economic facts, once created, may travel freely through normative debates and claim moral force. The technical process of economic modelling is therefore seen to be a crucial aspect of the economisation of this area, and of economic performativity more generally.     

Quality in the Performing Arts: Aggregating and Rationalizing Expert Opinion

The article is concerned with the issue of quality in drama, opera, and ballet, respectively. Relying on data from an expert opinion survey and from the statistical yearbook on theatres in Germany, the problem is addressed to what extent quality is linked to certain economic variables. After appropriately aggregating the ordinal expert judgments while controlling for expert-specific standards it is shown that this link is considerably closer for ballet and opera than for drama. Furthermore, in all three art forms positive but decreasing marginal returns of artistic expenses in terms of quality prevail.     

Willingness to Pay for Domestic Television Programming

The article describes the application of contingent valuation to estimate the value of the benefits that the Australian community derives from the mandatory transmission of Australian programs by television stations. This application of contingent valuation to estimate cultural benefits offers an insight on the potential for a wider application of the methodology to evaluate cultural policy instruments. The study found that a majority of Australians support regulation of the domestic content of television programs and considers the value of the related benefits to be commensurate with the cost of supplying domestic programming.     

French Decentralisation of the Performing Arts and Regional Economic Disparities

The standard deviation, the Gini coefficient, entropy measures and Atkinson's indexes are used to study French regional inequalities for per capita subsidies to the performing arts, as compared to GDP per worker, from 1992 to 2002. The two former indexes are more sensitive to transfers around the average, while the others are more sensitive to transfers at the lower end of the distribution scale. Whereas regional disparities remained stable for GDP per worker, they decreased for per capita subsidies to institutions and companies but increased for festivals. State subsidies are less unequal than local grants, so that a balanced decentralisation seems to rely upon some state control.     

Pricing as the Key to Attracting Students to the Performing Arts

There is a general assumption that young people do not attend arts events because ticket prices are too high. To test the validity of this assumption, a survey of students' attitudes toward attending the performing arts was conducted. The data revealed that whilst students are concerned about cost, the major barrier is the perception that arts events are boring. It was found that students will purchase tickets for arts events that are perceived as entertaining and allow socialisation. This work continues the discussion contained in the recently published paper by John W. O'Hagan on equal participation in the arts.     

The Closing of Academic Departments and Programs: A Core and Periphery Approach to the Liberal Arts and Practical Arts

Minerva - Did the liberal art disciplines at American universities have the highest failure rate between the 1970s and the early 2000s? Important theoretical traditions indeed believe that the...