View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by University of Essex Research Repository The role of museums in bilateral tourist flows: Evidence from Italy. Nadia Campaniello∗a,b and Matteo Richiardi †c,d a University of Essex, Department of Economics, Wivenhoe Park, Colchester CO4 3SQ, United Kingdom. bIZA - Institute for the Study of Labor, Schaumburg-Lippe-Strasse 5-9, 53113 Bonn, Germany. cUniversity of Turin, Department of Economics, via Po 53, 10124 Torino, Italy. dLABORatorio Revelli and Collegio Carlo Alberto, via Real Collegio 30, 10024 Moncalieri, Torino. March 8, 2016 Abstract This paper estimates the causal relationship between the supply of art and tourist flows. To this aim we use aggregate bilateral data on tourist flows and on museums in the twenty Italian regions. To solve the potential endogeneity of the supply of museums we use three different empirical strategies: we control for bilateral macro-area dummies, we compute the degree of selection on unobservables relative to observables which would be necessary to drive the result to zero and, finally, we adopt a 2SLS approach that uses a measure of historical patronage, the number of noble families, as an instrument for the number of museums. We always find strong evidence of a causal relationship between museums and tourist flows. Keywords: Demand for the art, museums, noble families, cultural tourism, causality. JEL codes: H23, R12, Z11, D62 ∗Corresponding author. Email:
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[email protected] 1 Acknowledgements: Special thanks go to Giovanni Mastrobuoni for his valuable sugges- tions and constant encouragement.