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Journal of Happiness Studies
Published in: Journal of Happiness Studies 1/2019

22-11-2017 | Research Paper

On the Use of Life Satisfaction Data for Valuing Cultural Goods: A First Attempt and a Comparison with the Contingent Valuation Method

Authors: Salvador del Saz-Salazar, Ana Navarrete-Tudela, José Ramón Alcalá-Mellado, Daniel Carlos del Saz-Salazar

Published in: Journal of Happiness Studies | Issue 1/2019

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Abstract

This article shows how life-satisfaction data can be used as a novel approach to value cultural goods since the contingent valuation method, although widely used, is still the subject of an intense controversy. The cultural good object of valuation is the Contemporary Art Archives and Collections of the Faculty of Fine Arts of the city of Cuenca (Spain) that constitutes a cultural legacy of great value for the community at large. Both methodologies are compared and results provide evidence that the Life Satisfaction Approach can generate meaningful values of cultural goods of use nature and non-use nature. Thus, adding a new tool of analysis expands the scope for the economic valuation of cultural goods. Finally, the pros and cons of this novel approach are discussed.
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Footnotes
1
The interested reader can find further information about the CAAC in http://​www.​caac.​uclm.​es/​.
 
2
Following MacKerron and Mourato (2009), among a total of 14 income brackets, household adjusted income was calculated as the mid-point of the selected income bracket divided by a household size equivalence factor as it is explained in Table 1 (see “adjustedincome” variable).
 
3
Protest responses, that accounted for 14.5% of the sample, were excluded in the estimation of both non-parametric and parametric models as it is usual in CVM studies related to the valuation of cultural goods: see, for example, Thompson et al. (2002) and more recently Kuhfuss et al. (2016). This moderate level of protest responses would suggest that respondents found the hypothetical market created, and the payment vehicle used, to be credible. We are aware that excluding protest responses from the sample could lead to a sample selection bias as noted by (del Saz-Salazar et al. 2016).
 
4
In this latter case, mean WTP is calculated considering not only the coefficients of the constant and bid variables, but also the coefficients of the rest of covariates multiplied by their respective means.
 
5
In the Spike model, as noted by Kriström (1997), this coefficient (beta) should be positive, i.e. the marginal utility of money must be positive in order for the mean to exist. Thus, mean WTP is given by this expression: ln[1 + exp(alpha)]/beta.
 
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Metadata
Title
On the Use of Life Satisfaction Data for Valuing Cultural Goods: A First Attempt and a Comparison with the Contingent Valuation Method
Authors
Salvador del Saz-Salazar
Ana Navarrete-Tudela
José Ramón Alcalá-Mellado
Daniel Carlos del Saz-Salazar
Publication date
22-11-2017
Publisher
Springer Netherlands
Published in
Journal of Happiness Studies / Issue 1/2019
Print ISSN: 1389-4978
Electronic ISSN: 1573-7780
DOI
https://doi.org/10.1007/s10902-017-9942-2

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