Economic Perspectives on Cultural Heritage by M. Hutter, I. Rizzo

By M. Hutter, I. Rizzo

The upkeep and potent use of cultural historical past contains very important fiscal facets but the sphere of up to date cultural coverage is unusually void of entire research from an monetary point of view. sought after lecturers and practitioners right here fill this hole. They research the theoretical history at the worth of cultural background, contemplate rules from Italy, France, Britain and Japan and make concrete proposals for alterations in cultural background policy.

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As a decision mechanism referenda have many advantages over democratic decisions via representation. In particular, they evade the principal-agent problem and constitute an effective barrier against the 'classe politique' (see for example Frey, 1994; Bohnet and Frey, 1994). Both aspects are of particular importance with respect to cultural decisions because the politicians and bureaucrats tend to have a greater amount of discretion in this area than elsewhere. It has been empirically shown (Frey and Pommerehne, 1990, chapter 10) that individual citizens evaluate not only user-values but also existence, option and bequest values in their vote.

M. Ricketts and A. Peacock, 'Bargaining and the Regulatory System', International Review of Law and Economics, 6 (1986), pp. 3-16. L. M. ), Beyond Privatisation: The Tools of Government Action, Washington, DC: The Urban Institute Press, 1989. J. M. Schuster and J. de Monchaux (eds), Preserving the Built Heritage: Tools for Implementation, Hanover, New Hampshire: University Press of New England, 1997. 30 Economic Perspectives on Cultural Heritage G. J. Stigler, 'The Theory of Economic Regulation', Bell Journal of Economics and Mangement Science, 2 (1971), pp.

Two types of cost of intervention can be identified. I I Firstly, there are administrative costs involved in formulating standards, in monitoring and enforcing them, or in setting up and operating the machinery to collect taxes or dispense subsidies. These costs are incurred by the public agency. Secondly, there are compliance costs, which are the expenditures required to be undertaken by firms and individuals in order to meet the regulatory requirements. The measurement of these costs may be elusive, since it may be that firms and individuals would have undertaken these expenditures anyway, and hence they could not be attributed directly as a cost of intervention.

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