The Artful Economist: A New Look at Cultural Economics PDF
Preview The Artful Economist: A New Look at Cultural Economics
Ilde Rizzo Ruth Towse Editors The Artful Economist A New Look at Cultural Economics The Artful Economist Ilde Rizzo (cid:129) Ruth Towse Editors The Artful Economist A New Look at Cultural Economics Editors IldeRizzo RuthTowse DepartmentofEconomicsandBusiness BournemouthUniversity UniversityofCatania Bournemouth,Dorset,UK Catania,Italy CREATe UniversityofGlasgow Glasgow,UK ISBN978-3-319-40635-0 ISBN978-3-319-40637-4 (eBook) DOI10.1007/978-3-319-40637-4 LibraryofCongressControlNumber:2016951843 ©SpringerInternationalPublishingSwitzerland2016 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilarmethodologynowknownorhereafterdeveloped. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthis book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained hereinorforanyerrorsoromissionsthatmayhavebeenmade. Coverillustration:Themusicis“SicilianaAcademica”composedbySirAlanPeacockinhonourofthe Faculty of Economics of the University of Catania, when he was awarded the laurea honoris causa (November20,1991) Printedonacid-freepaper ThisSpringerimprintispublishedbySpringerNature TheregisteredcompanyisSpringerInternationalPublishingAGSwitzerland In memory of Professor Sir Alan Turner Peacock 1922–2014 Foreword Alan Peacock, a Lucid, Rigorous, and Pragmatic Academic ThefirsttimeImetAlanPeacockwasinCatania,Sicily,inaseminaronheritage economics.Iwasamazedbytheveryhighstandardshesetforhimselfandforthe othereconomistsaswell(akindof“desireforexcellence”).Theparticipantsshared a strong concern for the “future of the past” and a sincere willingness to imagine sustainable economic models for the conservation of heritage. Alan Peacock was abletoreconcileanormativeandapositiveapproachandtoapplyhisexpertiseand knowledge of the general question of public policies for culture to the concrete problemsoftheconservationofheritage. With his impressive understanding of culture and the particular importance of musicinhislife,Peacockwasananti-conventionalthinker.Hiswritingwasprecise andelegant(ararequalityamongeconomists).Peacockdidnothesitatetobeironic or self-deprecating. He had a great sense of humour. Concerning heritage, he thoughtthatinagrowingeconomyitwasparadoxicaltoaskthepresentgeneration tofinancetheconservationofmonumentsandsitesforthenextgenerationwhowill bericherthanthepresentone.PeacockwouldprobablyhaveagreedwithGroucho Marx’s question: “Why should I care about future generations? What have they everdoneforme?” IwouldliketostressthreefeaturesaboutAlanPeacock’swritingsthatcrossthe differentcontributionstotheseminarthatwasheldinCataniain2015,whichforms the basis of this book: firstly, the wide scope of his commitments, secondly, his specificviewofpubliceconomics,andthirdly,hisinterestinculturaleconomics. 1. Peacock had a wide vision of the world and of economic science. He wrote importantreports,about30booksandhundredsofpapers.Hewasabletospeak to different audiences (academics and less-specialized audiences). He was a liberal,but—Iwouldsay—aninformedandenlightenedliberal:hewasalways attentive to the issue of public action. He was an expert for the British Liberal party,butalso,later,anindependentadvisor.Thisisprobablythereasonwhyhe vii viii Foreword wanted—in his book written with Charles K. Rowley (1975)—to challenge a mere Paretian approach of welfare economics by putting forward policy sug- gestions, such as negative income tax, antitrust action, etc. Peacock wanted to draw the boundaries of public action beyond which such action becomes inef- fective. He was especially sceptical about the evaluation of quality in the arts: maybe he was overall aware of the inability of economists to build reliable indicatorsofquality. 2. Alan Peacock’s interest in the economics of culture arose from public eco- nomics, with a clear issue: circumscribing public action without neglecting intervention in the presence of market failure (and for merit goods as well). Should the State provide subsidies to support infant industries or declining activities?Governmentshavetotakeintoaccountthatbudgetarydeficitshifts the burden of the public expenditures to future taxpayers who are not able to vote.Asapublicchoiceeconomist,Peacockwasmoreawarethanothersofthe respect for human values and individual choice. Market price should be considered the best indicator of an individual’s choices. A thread of his different contributions to cultural economics is this respect for individual preferences: “we do not need to specify a set of values at all. All we need is asetofmechanismsbywhichindividualmembersofsocietycanexpresstheir preferencesforculturalgoods,andweshallsoonfindouttheextenttowhichit seems necessary for them to take combined action in order to give effect to theirdesires”(Peacock1992:9). 3. Alan Peacock theorized reconciliation between individualism and interest in public action and translated this reconciliation in terms of public policy, espe- cially—but not only—in the case of TV (the choices of individuals should prevail). Peacock’s most famous contribution to British public life was his chairmanship of The Committee on Financing the BBC in 1985 and 1986. Among the report’s conclusions (Peacock 1986), we can stress the forward- looking view about the future of TV and especially about “the disruptive potentialofthenewtechnologiesofdistribution”.Thereportcanbeconsidered a summary of the ability of Peacock to be pragmatic and visionary simulta- neously:themarketmustbebasedonconsumersovereigntyonpay-tvandalso providediversityofprogrammesuppliers.Besidesthelaissez-fairemodelbased on broadcasters competing to sell audiences to advertisers, there is a place for publiclyfundedprovisionofhigh-qualityprogrammes. Alan Peacock’s expertise in the practical application of economics of the arts wasmuchwiderthanonlythecaseofbroadcasting.Hewasinterestedinallthearts. He served on the Arts Council of Great Britain and chaired the Scottish Arts Councilfrom1986to1992.Hisfocusonthefieldofheritageespeciallybenefited fromhistwofoldconcernfortheconservationofthepastandtheneedforsustain- able economic growth. He was aware of the fact that what we call heritage is not consideredashavinganyparticularimportanceatthetimeitiscreatedorproduced. He was pragmatic, considering “that a government policy should be directed towards identifying, maintaining and preserving what might be called Foreword ix ‘representative’historicalartefacts,insteadofgivingintothemagpie-likeprocliv- itiesofthosewhowouldpreservealmosteveryphysicalmanifestationofthepast” (Peacock 1997: 231). It was a way to emphasize the first duty of policymakers— making the best choice among different alternatives—and the first duty of econo- mists: to stay modest and aware of the limits of their models. As Professors Tim Besley,FBA,andPeterHennessy,FBA,writeintheirLettertoHerMajesty,about anothersideofeconomists’issue,theinabilityofeconomiststoforeseethecrisis: “The events of the past year have delivered a salutaryshock. Whether it will turn outtohavebeenabeneficialonewilldependonthecandourwithwhichwedissect the lessons and apply them in future”. (Letter to Her Majesty The Queen, British Academy,London,22July,2009). More generally, Alan Peacock had a distinctly independent mind. He never yielded to the temptation to make proposals that lobbies were expecting. For example, in 1970, he recommended that London should have only two fully grant-aidedorchestrasratherthanfour,givingbirthtoastrongcontroversy.Inthe same way, he did not hesitate to recognize in his report on TV that there was not enough advertising revenue to support both BBC and ITV companies in the short term. Therefore, he concluded that it was not time to replace licence fee TV by advertising revenues, in spite of the pressure of many figures in the Conservative Party. This is why I especially like the conclusion of his contribution to the Handbook of the Economics of Art and Culture edited by Victor Ginsburgh and David Throsby (2006): “Keynes looked forward to the days when economists wouldactandberegardedratherlikedentists,moreconcernedwiththeimmediate realitiesofimprovingthehumanconditionthanwithimpressingthepublicwiththe profundities of their statements about the good life. One suspects that Keynes’s hopemaybethewaythatculturaleconomicswilldevelopinrelationtoitspolicy relevance.Thatwillbealltothegood,buttheauthorstillregardsitasessentialthat economists will retain a watching brief on those who claim that their expertise entitles them to pride of place in policy decisions. If we do not continue to demonstrate that their judgments of value are arbitrary, then we must not be surprised if they continue to invent the economics for themselves.” (Peacock 2006:1139). Atthetimethisbookispublished,theeconomiccrisisinemergentcountries,the riseofinequalities,theworriesabouttheeffectofglobalizationonthepreservation ofculturaldiversity,andtheissueofmigrantschallengethefutureofEurope.We willmissacademicswiththisscopeandelevationofview. Paris13University,Paris,France Franc¸oiseBenhamou SciencesPo-Paris,Paris,France x Foreword References Peacock A (Chair) (1986) Report of the Committee on the financing of the BBC. Cmnd.9824. HMSO,London PeacockA(1992)Economics,culturalvaluesandculturalpolicies.In:TowseR,KhakeeA(eds) Culturaleconomics.Springer,Berlin,pp9–20 Peacock A (1997) Towards a workable heritage policy. In: Hutter M, Rizzo I (eds) Economic perspectivesonculturalheritage.St.Martin’sPress,NewYork,pp225–235 PeacockA(2006)Theartsandeconomicpolicy.In:GinsburghV,ThrosbyD(eds)Handbookof theeconomicsofartandculture.North-Holland,Amsterdam,pp1123–1140 PeacockA,RowleyCK(1975)Welfareeconomics.Aliberalrestatement.Wiley,AHalsteadPress Book,NewYork Contents Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 IldeRizzoandRuthTowse PartI CulturalPolicyinTheoryandPractice TheIndividualChoice-PublicChoicePerspectiveandCultural Economics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 FrancescoForte WelfareEconomicsandPublicPolicy:ARe-examination. . . . . . . . . . . 31 MartinRicketts PublicChoice,EconomicsofInstitutionsandtheItalianSchoolof PublicFinance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 EmilioGiardinaandIsidoroMazza PoliticalEconomyofBroadcasting:TheLegacyofthePeacockReport onFinancingtheBBC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 PeterGoodwin ThePublicSpendingforCultureintheFaceofDecentralization ProcessesandEconomicRecession:TheCaseofItaly. . . . . . . . . . . . . . 89 RobertoCelliniandTizianaCuccia PartII EconomicsofCopyrightandMusic PerformanceRightsinMusic:SomePerspectivesfromEconomics, LawandHistory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 HectorMacQueen CopyrightandMusicPublishingintheUK. . . . . . . . . . . . . . . . . . . . . . 133 RuthTowse xi
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