Research

Working papers:

Artists’ Labour Market and Gender: Evidence from German visual artists (joint with H. Sonnabend)

WU Department of Economics Working Paper, No. 307, December 2020.

Abstract: Using comprehensive data from German visual artists, we provide strong empirical evidence of a gender gap in revenues. We find that female artists have significantly lower revenues from the art market and are about ten percentage points less likely to remain in the top category over three years. This gap persists in the most prominent art forms and is more pronounced for younger artists. Only 30 to 40 percent of these gaps can be explained by differences in observable characteristics. We also find differences in the networking behaviour of the artists of different genders: females are connecting more, whereas males tend to create tighter links, suggesting the importance of the latter for the art market.

JEL codes: J4, J16, Z11

Keywords: gender gap, art market, artists' earnings

Endogenous Shocks in Social Networks: Exam Failures and Friends' Future Performance (Latest version, submitted)

WU Working Paper: pdf

Abstract: Exam failures of the students in a specific network may influence not only the future performance of the student but also all students from their friendship network. As a result, the cohort's performance may be affected by the poor performance of some students. Therefore, it is crucial to understand how the whole network responds to failure. The difficulty of such analysis is incorporated in the probability of the failures being highly endogenous, as it can be affected by the performance of peers. In this paper, I am applying the novel identification and estimation approach to deal with such endogeneity. I am exploring the dynamic data on the students' networks in HSE, Nizhniy Novgorod. The results suggest that, on average, the exam failure of the friend causes a decrease in future performance.

JEL codes: C21, C49.

Keywords: social networks, dynamic networks, peer effects, dropout.

Dealing with endogenous shocks in a dynamic network (Latest version)

WU Working Paper: pdf

Abstract: Different types of shocks or the treatment happening to one of the players in the network influence not only their future performance but affect all their network connections. Thus, it is crucial to understand the behavior of the whole network in response to such an event. It is, however, highly endogenous in a lot of settings. This paper adopts the logic used in peer effect literature to develop the dynamic model accounting for the endogeneity of the shock. The model allows predicting the endogenous part of the connections' shock and uses the unexpected component to estimate the effect of pure shock on the changes in one's outcome. I derive the identification conditions for such effect, which require variability of the network as well as the existence of intransitive triads and propose the procedure leading to the consistent estimator of the effect.

JEL codes: C21, C26, C49.

Keywords: social networks, dynamic networks, peer effects, endogenous shock.

Weighted Average Estimator in Nonparametric Quantile Regression for the Data of Higher Dimensions (joint with E.Mammen)

Abstract: The standard approach to the asymptotic analysis of nonparametric quantile regression is the use of the Bahadur expansion. However, it restricts the possible dimensionality of the covariate vector, given the optimal choice of bandwidth. We propose the alternative weighted average estimator for nonparametric quantile regression models, which allows to obtain inference results for the covariates of higher dimensions in nonparametric setting. The paper exploits alternative mathematical approach: we apply the higher order Edgeworth expansions to calculate the moments of Bahadur expansions of the nonparametric estimators. The proposed estimator can be further applied for the testing procedures and in some treatment settings, as well as in single-index and partially-linear models. We conduct a series of simulations that confirm our findings.

JEL codes: C14, C31.

Keywords: quantile regression, Bahadur representation, nonparametric estimation, curse of dimensionality.

Peer effects in art prices (Latest version, submitted)

Abstract: The real monetary value of the artworks and other creative process results is not easy to determine. Removing the price uncertainty is crucial to reward artists fairly and acknowledge the importance of creativity and innovations. This paper assumes that the reputation of the artists and their social connections can play a significant role in determining the prices of their work. I study whether a link to a higher valued peer positively affects the prices of art pieces and the probability of a successful sale. To test this hypothesis, I use the network of abstract artists, whose works' value is not always straightforward determined, and the prices of their works auctioned in 2000-2015 at Sotheby's, one of the most prominent art and collectibles brokers in the world. The results suggest that consumers are willing to pay more for a particular artist's work once there is a connection between the artist and a more valuable set of peers. However, the probability of sale is not affected. The auctioneer's predictions about future prices exhibit a similar trend.

JEL codes: C49, D44, D85, Z11.

Keywords: social networks, peer effects, art prices.

Work in progress:

Labour decisions of university students (very preliminary version is available on request)

Abstract: The high share of university students all over the world decides to take up a job already during their studies. This phenomenon can have negative consequences for the university, however, it is not always bad for the students themselves. In order to better understand the effect the high share of working students has for their

future performance, it is important to analyse the reasons for it. The paper .fills up the literature gap by exploring the social influences on the probability to combine work and studies. I am using the panel data of a cohort of university students from a highly competitive university in Russia (Higher School of Economics). I am exploring the self-reported friendship links data to identify the endogenous peer effect. Preliminary results suggest the lower probability to combine work and study for the students with many working friends. I see the reason for that in the potential negative image of the students who work and study at the same time for non-working students, which intensi.es with the increasing share of working friends. This effect might also be speci.c to the institutional setting of the highly competitive university, which is not always encouraging combining work and study.

Do university dropouts influence their friends? (joint with A. Holford)

Keywords: social networks, dynamic networks, peer effects, dropouts, endogenous shocks

Small fish in a big pond or big fish in a small pond? Tournament entry decisions in professional tennis (joint with A. Baldin and H. Sonnabend)

Keywords: tournaments; entry decisions; incentives; gender

Harmonious relations: Examining networks of music composers (joint with K. J. Borowiecki and N.Ford)

Keywords: teacher-student networks, creative clusters, transmission of creativity

Why so Many Misattributions in the Art Market? Exploring Labeling Strategies and Price Setting in the Tertiary Market (joint with A.-S. Radermecker and F. Angelini)

Keywords: art market, art prices, branding

From Consumers to Creators: The Economics of fan fiction (joint with H. Sonnabend)

Keywords: fan fiction; user-generated content; online public goods; voluntary contribution