Version classiqueVersion mobile
OpenEdition Books

The Economic Contribution of Culture

 | 
Yves Jauneau

Annexes _ The Economic Contribution of Culture

Texte intégral

Box 1 – The Statistical Field of Culture, Defined at Standardised European Level

1The field of culture is defined here through use of the French occupational classification system (Nomenclature des activités française, NAF), selecting 29 codes from the total 732 which make up the classification system at its most diverse (see table below). The statistical definition of the field of culture was the subject of European study between 2009 and 2011, following the 2008 updates to the French classification system (Nomenclature d'activités française, NAF Revision 2) and the Statistical Classification of Economic Activities in the European Community (NACE Revision 2). Under the aegis of Eurostat, (the statistical office of the European Union), a European working group (Task Force 1) designed a new European statistical framework whose aim was to standardise methodological tools and ensure better comparability of published results (see Concepts for the statistical Framework on Culture, Paris, Ministère de la Culture et de la Communication, DEPS, The “Culture méthodes” collection, 2011-3, 2011). These 29 cultural activities (at classification level 5, defined as “subclass”) are divided across 8 different activity groupings, the classification system’s 2figure “divisions”. These divisions are the most detailed possible level available for which INSEE provides accounting data (valueadded, output). For each level with at least one cultural activity it is therefore necessary to estimate the proportion which is cultural and that which is "non-cultural".

2010 Assessment

2To assess the economic impact of culture, we take the market output figure given in the national accounts definition at division level (2-figure codes) and give a breakdown by subclass (5-character codes) by applying a coefficient calculated based on INSEE’s annual sector-based surveys (enquêtes sectorielles annuelles). These surveys effectively give a detailed per-sector breakdown of business turnover for all industry activities. Their sector-by-sector summation therefore gives a sector breakdown identified by a 2-character division in each of its 5-character subclasses. This distribution key is thus applied to output as per its national accounts definition distributed by division (2 characters). It varies slightly from total output as surveyed by the ESA due to the specific way national accounting calculations are carried out, but this remains a fair approximation.

3For cultural education, non-market output is defined as the sum of expenditure by artistic education centres such as regional conservatories etc, as recorded in the DEPP’s (under the Ministry for Education) Education Accounts and French Ministry of Culture and Communication expenditure on cultural higher education establishments (Ministry source). Non-market output for divisions 90-91 is based on non-market output as given by INSEE (total 90-91) This total is divided into 3 fields (performing arts, visual arts, heritage) using various Ministry of Culture resources (e.g. surveys into local government cultural expenditure and public cultural establishment budgets) enabling the division of cultural public expenditure into wages and investment. Consequently this gives a slightly different way of dividing up the non-market output of divisions 90–91 to that given by INSEE, but it is a priori a better way of illustrating the purely cultural share. For NPISHs, non-market output is apportioned on the basis of France’s déclarations annuelles des données sociales (DADS).

4To calculate gross value added, a value-added/market output ratio is used, again based on INSEE’s annual sector-based business surveys (enquêtes sectorielles annuelles, ESA), in the purely market fields, with the value-added thus being assessed by subclass then being adjusted on the GVA given by INSEE for each divisional level. For those fields which are partially non-market (performing arts, heritage, cultural education, visual arts), the value-added/output ratio given for divisional level by INSEE is used.

5We thereby reckon the GVA for each cultural field, the sum of which gives the GVA of the "cultural branches" for 2010

6The threefold advantage of this method is that it is relatively simple to implement, consistent with data published by INSEE at a more aggregated level and stable over time. On the other hand, it is subject to national accounting standards, particularly where the market/non-market division is concerned and it does not allow certain specific aspects of culture to the taken into account. For example it might have been useful to show a division between subsidised and non-subsidised businesses, or to change the standard criterion of 50 % of production costs (see Box 2).

Assessment for 1995–2009 and for 2011

7Using the available above-mentioned sources and data, we have calculated results for 2010. To assess the economic impact of market output for 2011 and for the period 1995-2009, we changed the cultural coefficients based on annual changes to turnover, at subclass level (for each of the subclasses within a division). The data obtained are then multiplied by a coefficient, in order to obtain a total which represents the national accounts definition of market output for each division. For non-market cultural education, each of the two components (artistic training and higher education centres) are assessed on the basis of annual data from existing sources. For non-market output for other fields, the division between performing arts/visual arts/history was updated in 1996 and 2002 based on the aforementioned sources, and this division has been applied to the other years. The total for non-market output for branches 90-91 is still taken from national accounting data. We thus calculate market output and non-market output by domain in 2011 and for the period 1995–2009. To calculate GVA, the procedures for 2010 calculations are followed.

Assessment of GVA by volume

8To assess the GVA of the cultural branches by volume, we divide the GVA as the aforementioned value at the finest level of activity classification by a value-added price index. The price index used comes from two sources : the value-added price index for the sector available in national accounting standards (at classification division level) and, for divisions 58 and 59, a household consumer price index for the cultural product most closely matching the relevant category (e.g. : index of consumer prices for sector 58.13Z – Publishing of Newspapers). Indeed for both divisions it seems vital to separate price changes into sub-activities, as some of them show reverse trends (e.g. rising cinema ticket prices, falling DVD and record prices during the period in question).

9Finally, GVA by volume attained in this manner is multiplied by a coefficient which enables us, by addition, to determine the exact level of GVA by volume published at divisional level by INSEE under national accounting standards. The overall GVA price index for the cultural branches is thus obtained by dividing the value-added of the cultural branches as monetary value (or at current prices) by the figure for volume (or at constant prices).

Backward projection of the economic impact of culture by “minimum/maximum” assessment for the period 1959-2011

10To assess data prior to 1995, we no longer calculate inclusion rates but hypothesise on the minimum or maximum assessment for inclusion in culture. The classifications and their level of detail were in fact changed in 1995, only existing prior to 1995 at an aggregated level. The results shown below indicate that the direct economic impact of culture seems to increase almost continually from 1959 to 2003, with the exception of a brief hiatus in the late 1970s and early 1980s.

NB : cultural activities are grouped into 8 domains (see Table 2 of this publication), as indicated in the table above : AV : audiovisual ; PA : performing arts ; HER : heritage ; CE : cultural education ; BP : books and press ; AR : visual arts ; ARCHI : architecture ; ADV : advertising.

Graph 7 – The contribution of the cultural gross value added for the whole of the economy, based on maximum/minimum estimation, 1959-2011

Graph 7 – The contribution of the cultural gross value added for the whole of the economy, based on maximum/minimum estimation, 1959-2011

Source : INSEE, National Accounts 2005/DEPS data, French Ministry of Culture and Communication, 2013

Measurement of the economic contribution of culture is affected by the way its scope is defined

  • 1 We also see these choices in the 2009 UNESCO Framework for Cultural Statistics.
  • 2 The purchase of cultural goods online is on the other hand included : e.g. the legal downloading of (...)

11The statistical scope used here to measure the economic contribution of culture does not include certain fields which are very difficult to define from a statistical point of view, either because they do not correspond to a sector at its finest level of classification (art galleries, for example, are included in the "retail sale" sector), or because they relate to so-called creative activities which are for the most part industrial or commercial (e.g. the fashion clothing industry, retail book sales). Conversely, the scope selected here includes fields which are partly cultural, such as photographic development laboratories and advertising agencies ; excluding these high valueadded sectors from the scope of culture would result in a 10 % reduction in its value. Therefore, we have not included here industrial activity sectors which might be considered cultural such as printing activities (18.11 and 18.12, the latter code (“Other printing”) having a more limited cultural content), or reproduction (18.20) and manufacture of musical instruments (32.20) as these are activities which only enable the reproduction of cultural products but do not bring any cultural value to the process1. The same goes for equipment and materials (from the manufacture of optics to that of paints or other printing varnishes and inks). Value-added for musical instrument manufacture in 2010 was put at € 96bn yet its contribution to the calculation of the economic impact of culture remains minimal. Inclusion of this activity might risk losing its visibility in culture, spreading it too thinly across various sectors. Finally, the production of communication tools, (i.e. all activities related to the dissemination and provision of telecoms services ; the cost of an ADSL subscription for example) is not included in this field, even though these tools enable the dissemination of cultural activities and services (an internet connection enables people to listen to music online for example2).

12The European statistics working group has arrived at a definition of the scope of culture mutually approved by countries with quite different backgrounds and governments.

The scope of culture within household consumer expenditure

13Included in the scope of cultural expenditure are a number of items or groups of items within the Classification of Individual Consumption by Purpose (COICOP3) listings, which divides household consumption into products : HJ58Z1A (books), HJ58Z1 (newspapers), HJ58Z1D (journals and periodicals), HJ59Z2 (motion pictures, videos and television programmes), HJ59Z3 (sound recordings and music publishing), A88.60 (programming and broadcasting), A88.90 (creative, artistic and performing arts activities) and A88.91 (libraries, archives, museums and other cultural activities). On the other hand, to maintain consistency with the economic impact of the cultural sectors, spending on "the distribution of packages of radio and television programmes" (classified under division 61 of COICOP) is not counted as cultural expenditure. These classification systems are very slightly different to those used to determine output and GVA. It is not possible therefore here to give a complete breakdown of GVA for the cultural branches by different aggregated groups (such as household consumer expenditure) as is done for example for the economy as a whole under national accounting standards4 and to thus create an appended or “satellite” account specifically for culture. The sources would moreover not be sufficient to assess each of the GVA considerations.

The scope of culture within public expenditure

  • 5 For this same public museum, sale of tickets, under national accounting standards, is counted as no (...)

14The classification system for consumer expenditure is different to that for production, however there are many possible points of comparison. Certain international classification system items defined by the National Accounts system of 1993 (revised 1999) are included as cultural expenses : COFOG (Classification of the Functions of Government5) : 08.2 – Cultural services, 08.3 Broadcasting and publishing services and 08.5 R&D Recreation, culture and religion.

Box 2 – Definitions and Concepts

Institutional bodies or sectors

15Five major institutional sectors go to make up the national economy : Non-financial corporations (S.11), Financial corporations (S.12), General Government (S.13), Households (S.14), Non-profit institutions serving households (S.15).All non-resident units, inasmuch as they maintain economic relations with the units which make up the national economy, are covered by Rest of the world (S.2). Culture covers three institutional sectors (S.11, S.13, S.15).

16Non-financial corporations produce market goods and service (i.e.at a price covering more than 50 % of production costs) and have no non-market output (see below). On the other hand, the two other players (General Government and NPISH) produce predominantly non-market goods and services, i.e. at a price covering less than 50 % of production costs. The 50 % criterion is an agreed standard at national accounting level, as is the split between General Government and NPISH. This results in a public accounting system which is comparable at European level. Were the 50 % threshold to be lowered, fewer establishments would be classified as non-market, which would bring down the total for non-market output because, for these establishments, only their market output would be taken into account.

Non-financial corporations, referred to here as businesses

17Businesses cover the economic agents whose primary function is to produce non-financial market goods and services. They make up the largest part of the productive system. They can be divided into two main categories :

  • non-financial corporations, which usually have their own legal personality (limited liability companies (e.g. SA, SARL, SAS), single owner limited liability company (EURL), cooperatives, partnerships, industrial and commercial public establishments (EPICs), non-profit-making organisations, holdings, etc.), and an accounting system which is independent of its owner

  • individual businesses whose legal personality is not distinct from that of their owner (craft workers, shopkeepers, professionals, etc.). A company's legal status should not be confused with its régime which only affects its tax rate : the French social security system provides different types of cover for people in paid employment, with different régimes for the self-employed, small businesses etc.

General Government

18All institutional units whose primary function is producing non-market goods and services or carrying out transactions that redistribute income or national wealth. The majority of their resources comes from compulsory contributions. The General Government sector includes central, state and local government units (including what are administratively termed Other Government Bodies, to which the state has entrusted a functional and specialised competence at national level) along with their social security funds.

19For culture, General Government comprises : the state (which devotes part of its budget to culture), certain Other Government Bodies (whether public or subsidised) and local governments (a proportion of whose expenditure also goes on culture). Other Government Bodies involved in culture include public bodies under the aegis of the Ministry (Paris National Opera, the Louvre, cultural higher education establishments, etc.) as well certain major subsidised establishments such as national theatres, orchestras etc. The French government list of Other Government Bodies can be found here : http://www.insee.fr/​fr/​indicateurs/​cnat_annu/​base_2005/​ methodologie/odac-simple.pdf.

20The majority of subsidised cultural bodies are nevertheless classified under national accounting standards as NPISH (see below).

Non-profit institutions serving households (NPISH)

21These are special kinds of non-profit institutions which produce nonmarket goods and services for households. Their resources are derived mainly from donations in cash or in kind from households in their capacity as consumers, from payments made by general governments, and from property income.

22In the cultural sphere, excluding the aforementioned Other Government Bodies, NPISHs are almost exclusively associations, and they operate within four areas : cultural education (regional music schools for example) the performing arts (theatre companies for example), heritage (regional museums) and the visual arts (educational bodies for art, sculpture, etc.).

Economic indicators

Production

23Economic production is an activity carried out under the control and responsibility of an institutional unit that uses inputs (labour, capital, and goods and services) to produce outputs of goods or services. These outputs are usually destined for other institutional units than their own producer, but may also be used by the producer. There are three types of output :

  • market output, which consists largely of products sold at an economically significant price

  • output produced for own final use, which consists of goods and to a lesser extent, the services produced by an institutional unit for its own sole use or for own-account fixed capital formation. The output of dwelling services by owner-occupier households is included in this category

  • non-market output consists of output supplied to other institutional units for free or at prices that are not economically significant. This covers goods and services not for sale on the market because they are indivisible (e.g. defence, police, public lighting etc.) or sold at very low cost for political purposes and because they promote positive external effects (e.g. education and culture). In the absence of a market price, these non-market services are evaluated on the sum of their production costs : compensation of employees, products used for intermediate consumption to produce the services in question, taxes relating to production and consumption of fixed capital.

Intermediate consumption

24Intermediate consumption consists of the value of the goods and services consumed in the process of production. However, this excludes fixed assets whose consumption is recorded as consumption of fixed capital. In certain cases, the dividing line between intermediate consumption and capital formation is based on conventions. Hence the following are included under intermediate consumption : routine maintenance work for company buildings, purchases of small tools, expenses for research and development, staff training, etc.

Applying French national accounting standards to cultural sector output

25Cultural businesses (publishing houses, press groups, cinemas, television stations, architecture firms, private live entertainment venues, artistic creators, etc.) are responsible for the vast majority of cultural sector market output (€ 63bn), with a proportion of that output being devoted to non-cultural goods or services (catering facilities in entertainment venues for example). A very small proportion of cultural market production (totalling € 2bn) comes, on the one hand, from businesses whose main activity is not cultural (book publishing within a company, live entertainment in a restaurant, for example) and on the other hand, from the residual market output of certain cultural administrations, selling cultural products at market prices (the sale of books by a public museum for example1). Market output for cultural branches is therefore put at € 65bn.

26General government as a whole is responsible for a non-market cultural output of € 14bn. NPISHs, which almost exclusively consist of non-profit-making organisations (music colleges, theatre companies etc.), in 2011 totalled production costs of € 2bn euros which, in accordance with current norms, corresponds to their non-market output Households thus benefit from General Government and NPISH’s cultural nonmarket production through their access to museums, entertainment venues, artistic education services (conservatories), at lower rates. It is also worth noting that households, in buying museum and live entertainment tickets are helping reduce the net production costs of cultural associations and government authorities ; however, in accordance with current norms, this cost is not deducted when calculating non-market output.

27Finally, cultural businesses generate € 4bn in capitalised production of cultural goods or services (for example television programmes made and intended to be broadcast at a later date).

28Overall, market, non-market and capitalised production for the cultural branches is therefore 65 + 16 + 4 = 85 billion euros.

Graph 8 – Output for the cultural and non-cultural branches and sectors for 2011

Graph 8 – Output for the cultural and non-cultural branches and sectors for 2011

Source : INSEE, National Accounts – 2005/DEPS data, French Ministry of Culture and Communication, 2013

Bibliographie

Statistical Scope for Culture and Cultural Data

DEROIN Valérie, Conceptualisation statistique du champ de la culture, Paris, Ministère de la Culture et de la Communication, DEPS, « Culture méthodes » collection, 2011-3, December 2011.

The 2009 UNESCO Framework for Cultural Statistics 2009, http://unesdoc.unesco.org/images/0019/001909/190909f.pdf LACROIX Chantal, Chiffres clés 2013. Statistiques de la culture, Paris, Ministère de la Culture et de la Communication/La Documentation française, 2013.

Cultural Practice and Consumption

« Les services marchands en 2011. Rapport sur les comptes », INSEE, document de travail, June 2012.

Olivier DONNAT, Les Pratiques culturelles des Français à l’ère numérique, enquête 2008, Paris, Ministère de la Culture et de la Communication/La Découverte, 2009.

Olivier DONNAT, Les Pratiques culturelles des Français à l’ère numérique, enquête 2008, synthèse, Paris, Ministère de la Culture et de la Communication, DEPS, « Culture études » collection, 2009-6, 2009.

Chantal LACROIX, Les Dépenses de consommation des ménages en biens et services culturels et télécommunications, Paris, Ministère de la Culture et de la Communication, DEPS, « Culture chiffres » collection, 2009-2, 2009.

Bruno MARESCA, Romain PICARD, Thomas PILORIN, Dépenses culture-médias des ménages au milieu des années 2000 : une transformation structurelle, Paris, Ministère de la Culture et de la Communication, DEPS, « Culture études » collection, 2011-3, 2011.

Methodological Data and Documentation on National Accounting Systems

Mélanie VANDERSCHELDEN, « La place du secteur associatif et de l’action sociale dans l’économie », INSEE Première, June 2011, no 1356.

Detailed data and breakdown of gross value added by branches : http://www.insee.fr/fr/themes/theme.asp?theme=16&sous_theme=5.2

Detailed data on household consumption : http://www.insee.fr/fr/themes/theme.asp?theme=16&sous_theme=2.3

Detailed data on general government expenditure by function : http://www.insee.fr/fr/themes/theme.asp?theme=16&sous_theme=3.3

Methodological notes on assessment concepts and methods

http://www.insee.fr/fr/themes/comptes-nationaux/default.asp?page=base_2005/methodologie/methodologie.htm

Notes

1 We also see these choices in the 2009 UNESCO Framework for Cultural Statistics.

2 The purchase of cultural goods online is on the other hand included : e.g. the legal downloading of music is included in NAF code 5920Z Sound recording and music publishing.

3 See :http://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=5&Top=2&Lg=2

4 See : http://www.insee.fr/fr/themes/theme.asp?theme=16&sous_theme=3.3

5 For this same public museum, sale of tickets, under national accounting standards, is counted as non-market production, as these sales are viewed as being at a preferential consumer rate, through the use of public subsidies to the museum. This is an accepted accounting norm.

Table des illustrations

Légende NB : cultural activities are grouped into 8 domains (see Table 2 of this publication), as indicated in the table above : AV : audiovisual ; PA : performing arts ; HER : heritage ; CE : cultural education ; BP : books and press ; AR : visual arts ; ARCHI : architecture ; ADV : advertising.
URL http://books.openedition.org/deps/docannexe/image/510/img-1.png
Fichier image/png, 252k
Titre Graph 7 – The contribution of the cultural gross value added for the whole of the economy, based on maximum/minimum estimation, 1959-2011
Crédits Source : INSEE, National Accounts 2005/DEPS data, French Ministry of Culture and Communication, 2013
URL http://books.openedition.org/deps/docannexe/image/510/img-2.png
Fichier image/png, 23k
Titre Graph 8 – Output for the cultural and non-cultural branches and sectors for 2011
Crédits Source : INSEE, National Accounts – 2005/DEPS data, French Ministry of Culture and Communication, 2013
URL http://books.openedition.org/deps/docannexe/image/510/img-3.png
Fichier image/png, 198k

© Département des études, de la prospective et des statistiques, 2013

Creative Commons - Attribution-NonCommercial 3.0 Unported - CC BY-NC 3.0

Lire

Open access