75965 - Economics of Arts and Culture

Learning outcomes

The course will take a wide-ranging perspective on the economics of arts and literature, and discuss the broader role of 'culture' in economics. 

Cultural activities share some basic (yet, not exhaustive) characteristics. They all involve forms of creativity in their production. They focus on the creation of symbolic meaning. Their output usually includes forms of intellectual property. 

The aim of the course is to provide the students with the fundamental tools to think critically and independently about the main economic aspects of cultural resources, including the structure of the markets, the determinants of supply and demand, the assessment of values and prices, and the tools for economic policy usually applied to the cultural sector.

Course contents

The lessons of the course will deal with the following topics of economic analysis:

The organization of economic market processes and the role of creative processes

Creativity: is it the outcome of a decision-making process? Does it arise from a process that is not based on rational choices?

Economic value and cultural value: how can we systematically think about the economic implications of 'cultural' activities?

The organization of value chains: are cultural activities different from the others?

Human capital, physical capital and cultural capital: what are the differences between these three 'factors of production'?

Determination of supply and demand: a comparison between the economic sectors related to cultural activities and the other 'standard' economic sectors.

Baumol's cost disease: what it is and why it is no longer relevant for understanding cultural phenomena.

Setting the entry price for a museum: why are the pricing policies linked to this activity different from those that characterize other economic sectors?

Readings/Bibliography

The key piece of literature for the course consists in the book titled 'Economics and Culture' written by David Thorosby, Cambridge University Press, 2001.

This textbook is also available in Italian language from a publishing house other than Cambridge University Press.

The students should study all the chapters of the textbook.
In addition, they can choose whether to refer to the English version of the book, or to its reprint in Italian. The two editions cover the same material relevant to the course.

The teacher will distribute also a set of slides to the students who attend the lectures. This material will cover the topics presented during each lesson. The students who choose not to attend the course will not need to refer to the slides.

Teaching methods

There will be a series of lectures organized over a short period of time. Student participation will be strongly encouraged as there will be a focus on interaction between the students and the teacher. 

Assessment methods

Final assessment will be based on a written exam. This will based on a limited number of questions on the topics covered in the textbook.

A deep understanding of the subject dealt with in the textbook, coupled with a sense critical reasoning and the appropriate use of economic jargon will lead to a final mark within the range 27-30 with honors.

A demonstration of learning-by-heart attitude to the subject of the course, along with a unsatisfactory evidence of logical reasoning and a mildly-appropriate use of economic jargon will be evaluated with a mark in the range of 21-26.

A limited understanding of the course subject, coupled with the inappropriate use of language expressions and below-average logical skills will be consistent with a mark in the range of 18-20.

A complete lack of understanding about the course subject, the use of out-of-context language expressions and inadequate logical skills will lead to a fail mark.

Teaching tools

The teacher will share with the students a course material based on slides.

The slides will be tailored-made to the ongoing discussion and interaction developed during the lectures. 

Links to further information

http://admin.cambridge.org/academic/subjects/economics/economics-general-interest/economics-and-culture#HbCMftehdxYGVyOf.97

Office hours

See the website of Paolo Zagaglia