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Regular version of the site

Economics of Arts

2021/2022
Academic Year
ENG
Instruction in English
6
ECTS credits
Course type:
Compulsory course
When:
1 year, 1, 2 module

Instructor

Course Syllabus

Abstract

We often think of art in terms of its uniqueness and originality. There is no any other art piece. Hence, it is priceless. On the other hand, the art world obeys the general laws of economics, and art objects are unique goods for which there is a demand and supply. Thus, with the emergence of art objects as unique goods, demand for them from various market participants and supply on the other hand, an art market is formed. As with any other market, the art market can also experience ups and downs and is subject to general economic processes. Within the framework of this course, the disciplines of economic theory will be combined with the specifics of the industry of culture and art. In this case, the theory of economics will be considered both from the point of view of global macroeconomic processes and at the level of micro processes occurring in the art market.
Learning Objectives

Learning Objectives

  • course forms an understanding of the art market, its specifics and regulatory mechanisms. This goal also includes consideration of the art market both in Russia and on a global scale. Students will have the opportunity to explore not only the art market itself, but also how it interacts with the global economy
  • to familiarize students with the principles of economic theory and project management, which is especially important for future art managers. Within the framework of this goal, students will develop their project and calculate the costs and profits for its implementation.
Expected Learning Outcomes

Expected Learning Outcomes

  • Knows and is able to apply the basic principles of micro and macro economics, as well as apply this knowledge to analyze the functioning of markets
  • Knows and is able to apply the rules of justification, calculation and implementation of a project in the field of culture and art
  • Knows and is able to apply in practice the main features of the functioning of the art market, understands the relationships of processes occurring on the market
  • Knows the current state of the art market both in Russia and abroad
Course Contents

Course Contents

  • Introduction Arts and Culture Economics
    What is the specifics of Art market and how it might be considered from the stand point of economic principles; what is possible intersection between Economics and Art; what are the main economic views on the market and what is the common understanding of the market from different perspectives
  • Art Market Relations
    Who are the main stakeholders and players in the Art market; what is supply and demand and how they are formed; what are the main regulatory regimes and administration of the Arts and Culture market; understanding of the behavior in Arts and Culture
  • Art Pricing
    Types and functions of the price; what is the fair pricing for the unique art goods and services; evaluation and expertise of the art objects; art organizations’ budgets: costs and profits.
  • Microeconomics of Art
    Organization and the project; basic principles of the project management; formation and balancing of the budget of the project; commercial activity and efficiency.
  • Financial Performance of the Project
    Finance of the art institution; how to calculate the budget of the project and evaluate its efficiency and effectiveness and profitability; main definitions, formulas and explanations behind calculation of the financial performance of the project.
  • Economic Cycles and Shocks
    What is the economic cycle and different perspectives on reasons and consequences of the economic cycling; NFT as possible perspective of Art market; bubbles and shadow economy; potential for Arts and Culture market in Russia
Assessment Elements

Assessment Elements

  • non-blocking Essay
    Essay might be taken individually or in groups of maximum 3 students. By the second class of the course students are offered to select from the list one paper regarding the topic of Arts and Culture, read the paper and answer the questions. When answering student should show own ability to understand and analyze the content of the paper, topic of the paper and importance of the topic. Essay should be sent via email to lectures of the course by the end of the course.
  • non-blocking Project Development
    Students are asked to develop own project related to Arts and Culture. Project might be performed individually or in team of maximum 3 students. Students will receive the working book with all the guidelines on how to calculate the project. During the course students have an opportunity to ask questions related to their projects and discuss intermediate steps of the project development. At the last seminar students are asked to present their project results.
  • non-blocking Exam
    The exam is conducted offline in class. There is no possibility to retake the exam except only serious health problems proven by doctor. Questions for retake exam differs and additionally the examinee must explain their answer. Questions can be asked on all topics of the course.
Interim Assessment

Interim Assessment

  • Interim assessment (2 module)
    0.3 * Essay + 0.2 * Exam + 0.5 * Project Development
Bibliography

Bibliography

Recommended Core Bibliography

  • Bruno S. Frey. (2005). What Values Should Count in the Arts? The Tension between Economic Effects and Cultural Value. CREMA Working Paper Series.
  • Throsby, C. D., & Ginsburgh, V. (2013). Handbook of the Economics of Art and Culture. North Holland.

Recommended Additional Bibliography

  • Mark Blaug. (2001). Where Are We Now On Cultural Economics. Journal of Economic Surveys, 2, 123. https://doi.org/10.1111/1467-6419.00134
  • Ruth Towse, & Abdul Khakee. (2012). Cultural Economics (Vol. 1992). Springer.