European capitals of culture and life satisfaction

Lasse Steiner, Bruno Frey and Simone Hotz

No 117, ECON - Working Papers from Department of Economics - University of Zurich

Abstract: This paper analyzes whether hosting the most prestigious European cultural event, the European Capital of Culture, has an impact on regional economic development or the life satisfaction of the local population. Concerning the economic impact, we show that European Capitals are hosted in regions with above average GDP per capita, but do not causally affect the economic development in a significant way. Even a positive impact on GDP per capita would not imply a positive impact on individual utility or social welfare of the regional population. Surprisingly, using difference-in-difference estimations, a negative effect on the well-being of the regional population is found during the event. Since no effect is found before the event, reverse causality and positive anticipation can be ruled out. The negative effect during the event might result from dissatisfaction with the high levels of public expenditure, transport disruptions, general overcrowding or an increase in housing prices.

Keywords: Life Satisfaction; mega-events; culture; european capital of culture (search for similar items in EconPapers)
JEL-codes: H40 H54 R12 Z11 Z18 (search for similar items in EconPapers)
Date: 2013-04
New Economics Papers: this item is included in nep-cul, nep-eur, nep-hap, nep-tur and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Related works:
Journal Article: European Capitals of Culture and life satisfaction (2015)
Working Paper: European Capitals of Culture and Life Satisfaction (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:zur:econwp:117

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