Journal articles on the topic 'Demand for money – Italy – Econometric models'

This paper focuses on the impacts of new information technology on newsprint demand in a sample of West European countries (Germany, Italy, Spain, and the United Kingdom). It is hypothesized that information technology, through the ready and free availability of news content on the Internet, could induce a structural shift in the newsprint consumption pattern in these markets. Econometric analyses based on historical data for the four countries mentioned above do not yet support this hypothesis. Based on evidence from the United States, where Internet penetration is higher, and several recently published market studies, there is, however, reason to expect stagnating newsprint consumption in Western Europe. By using Bayesian demand models, we try to incorporate prior information from these market studies in the econometric analysis. A classical demand model, based solely on historical data from 1971 to 1999, is estimated for comparison with the Bayesian models. Predictions for newsprint consumption based on the Bayesian approach show lower future consumption levels than those predicted by the classical models, which are commonly used in forest product demand studies. We conclude that Bayesian models carry the potential to improve the quality of forest products demand analyses when a structural break can be expected and sufficient information on its dynamics is available.

Using a qualitative methodology approach, a case study research design by way of in-depth semi-structured interview(s) was followed to interview farmers, commercial banks, development banks, venture capitals and private equities to determine the financing options available for farmers and provide reasons why some financial institutions shy away from providing finance to agricultural enterprises. This study deviates from prior studies which have focused on small-scale farmers and subjected farmers’ access to finance to rural credit markets, mostly informal money lenders using secondary information mostly from household surveys to build econometric models. The study indicates that only about 33 percent of formal financial institutions are providing finance to agricultural SMEs. The lack of expertise and perception of risk were cited as top reasons why formal financial institutions find it hard to provide finance to agricultural SMEs. Building on opinions from other authors cited in this paper, we maintain that new financing mechanisms can be achieved by all types of financial institutions through learning from experiences by other successful countries.

What problem the Fed and other central banks are solving by printing money and letting interest rates fall to zero is the focus of this paper. This activity does not appear to affect nominal GDP or inflation prior to COVID, and yet central bank liabilities have continued to rise. This suggests the presence of rising cash demand that has prevented excess cash and inflation pressures from emerging. While there was some hope that quantitative easing would be a new instrument in addition to interest rates as far as monetary policy goals were concerned, this has not proved to be the case. Instead, banking system demand for central bank liabilities keeps rising as an endogenous response to the changed business models of banks forced on them by post-crisis re-regulation and extremely low interest rates. These ideas were tested with cointegration and error correction econometric techniques. Examples of the growing risk of leverage and counterparty risks in this disequilibrium process are provided.

This paper will present a set of simulation exercises, and discuss some of the methodological issues arising from the new National Institute Model 8. This model has been developed from earlier models used at the National Institute and has much in common with those models. In particular, it adheres to a traditional income-expenditure framework and is, in broad outline, a Keynesian model. The new feature of Model 8 which distinguishes it from its predecessors is the explicit widespread treatment of expectations. Recognition of the importance of expectations in macroeconomics is widely disseminated and much attention has been given recently in the econometric literature to the modelling of expectations. Model 8 now includes explicit expectations terms in the following sectors: employment, stockbuilding, investment, wage formation, the exchange rate and the demand for money. The details of individual equation estimation and specification may be found in Hall and Henry (1985a) and will not be given here. In the estimation process much use has been made of the rational expectations hypothesis, while in the full model implementation expectations may be formed either consistently or on the basis of explicit expectations models.

The aim of this study is to investigate the long-term determinants of China’s imported wine demand and to forecast wine imports from 2019 to 2023 using econometric methods. Auto-regressive distributed lag models are developed based on neoclassical economic demand theory to investigate the long-term determinants of China’s demand for imported bottled, bulk, and sparkling wine from the top five countries of origin. The empirical results demonstrate that income is the most important determinant of China’s imported wine demand, and that price only plays a significant role in a few markets. Substitute and complement effects are identified between wines from different countries of origin and between imported wines and other liquids. China’s imported wine demand is expected to maintain its rapid growth over the forecast period. Bottled wine will continue to dominate China’s imported wine market. France will have the largest market share in the bottled wine market, Spain will be the largest provider of bulk wine, and Italy will hold the same position for sparkling wine. This is the first study to use a single equation with the general to specific method rather than a system of equations to estimate and forecast China’s demand for imported bottled, bulk, and sparkling wines from different countries of origin. The more specific model setting for each country of origin improves forecasting accuracy.

Public transport can discourage individual car usage as a life-cycle asset management strategy towards carbon neutrality. An effective public transport system contributes greatly to the wider goal of a sustainable built environment, provided the critical transit system attributes are measured and addressed to (continue to) improve commuter uptake of public systems by residents living and working in local communities. Travel data from intra-city travellers can advise discrete policy recommendations based on a residential area or development’s public transport demand. Commuter segments related to travelling frequency, satisfaction from service level, and its value for money are evaluated to extract econometric models/association rules. A data mining algorithm with minimum confidence, support, interest, syntactic constraints and meaningfulness measure as inputs is designed to exploit a large set of 31 variables collected for 1,520 respondents, generating 72 models. This methodology presents an alternative to multivariate analyses to find correlations in bigger databases of categorical variables. Results here augment literature by highlighting traveller perceptions related to frequency of buses, journey time, and capacity, as a net positive effect of frequent buses operating on rapid transit routes. Policymakers can address public transport uptake through service frequency variation during peak-hours with resultant reduced car dependence apt to reduce induced life-cycle environmental burdens of buildings by altering residents’ mode choices, and a potential design change of buildings towards a public transit-based, compact, and shared space urban built environment.

Federalism in Italy arised beginning ’90, pushed bipartisanly from establishment in order to contrast the succesfull poll of northern league party. Being about 80% of the regions budget for healthcare, federalism had its hard impact on it. Regions can manage autonomously their healthcare organization, adding to the State financial resources own money earning from other their services or coming from local taxes, on condition that they provide the State LEA (Essential Level of Assistance). That means a high level of responsabilization for local government for reaching a higher level of efficiency in allocation of resources and organizational models of production and erogation of healthcare, beside a better ability to catch local healthcare demand. Even if now the sharing of State financial resources are agreed between all regions and Government, it’s not clear for the future wheter each region will have to procure its own finance, introducing many problems for those southern regions unable to substain theirselves. It has still to be defined wheter and how reach regions will have to transfer part of their resources to the poor ones. That means a risk of iniquity of level in healthcare provision among regions of the same country, generating possible social conflict. Therefore federalism now has from a hand the opportunity to better tail healthcare on each local demand and, on the other hand, it risks to introduce social disparity and conflicts.

This study is divided into two parts. The first part of the study utilises econometric models to assess the economic performance of clients participating in the microcredit programme of Amanah Ikhtiar Malaysia (AIM). Several proxies are used for the economic performance variable (dependent variable), including level of earnings/income, ratio of spending to income and value of assets. The regressors (independent variables) used are education level, age, amount of loan, source of income and ownership of assets. The second part of this study concentrates on analysing the prospects of introducing Islamic microfinance products to be used in microfinance activities in Malaysia. In the first part of the study, we find that the economic performance of AIM participants is significantly determined by the amount of money borrowed from AIM. Other factors found to influence the respondents’ economic performance are education level, age, gender, assets owned before joining AIM and area of residence. Because level of education is found to contribute significantly to the economic performance of AIM participants, it is suggested that AIM work to educate its borrowers, and more specifically, to provide business training. In the second part of the study, the results show that there is a great demand for Islamic microfinance products in Malaysia. The findings of the study could serve as general guidelines for microfinance institutions in designing Islamic microfinance products for either Muslims or non-Muslim micro-entrepreneurs.

• Resumen: Debido a diversos factores o prejuicios que afectan el trabajo econométrico de la mayoría de los economistas, usualmente se siguen secuencias ad-hoc para la construcción de modelos. Esto es, se prueba una serie de ecuaciones que comienza con una forma funcional simple a la cual se le introducen o eliminan otras variables con base en criterios exclusivamente estadísticos (significancia, bondad de ajuste, etc.). En los últimos años, algunos autores han considerado que tales procedimientos pueden conducir a conclusiones espurias. Proponen como alternativa iniciar la serie de pruebas con base en un modelo lo más general posible (que incluya o "encajone" las diferentes hipótesis teóricas) y posteriormente investigue qué tanto puede simplificarse dicho modelo, siguiendo procedimientos legítimos. En este artículo se utiliza el caso de la demanda de dinero en el Reino Unido para realizar un ejercicio que muestra las bondades del método propuesto. • Abstract: For a variety of reasons economists tend to construct their econometric models in ad-hoc ways. They start with a simple specification of a series of equations and add or subtract variables on the basis of exclusively statistical criteria. In recent years it has been realized that such an approach can easily produce spurious results. It is now preferred to commence one's analysis with as general a specification of the model as possible which nests possible alternatives. One then can legitimately compare the original specification with the various nested forms. This paper uses the case of the demand for money in the United Kingdom as an example of the method.

PurposeIt is widely believed that ICT has a significant influence on the daily life of the poor and has positive spillover effects in their livelihoods. Mobile phones are one of the few ICT innovations that have found their way into the hands of the poor residing in remote and rural areas. In Ethiopia, mobile phones are recently introduced but got an acceptance from everyone including the rural poor; in five years’ time, mobile phones subscription has increased from less than 4% to more than 40%. Empirical evidence generally documents the positive role mobile phones play in facilitating the development efforts of poor households. However, using panel data from Ethiopia, the current paper explores a less investigated issue of the possible effects of mobile phone adoption on the credit uptakes of the rural poor who are mostly neglected from the formal credit markets but finance their credit demand from informal sources including relatives/friends.Design/methodology/approachTo investigate the relationship between mobile phones and credit uptake and/or loan size, one can use different empirical strategies. For partly unleashing the endogeneity problem, an instrumental variable estimation approach is adopted in this paper. To deal with the endogeneity problem, one may consider using the linear IV approach or the control function. But the outcome variable and the endogenous variable are binary in nature, and the usual trend is to use the linear IV models or control functions, which do not consider these binary natures of the variables. To this end, a special regressors estimator is adopted, mostly used when both the dependent and the endogenous variables are binary in nature.FindingsThe econometric results suggest mobile phones are positively associated with the credit uptake of rural households, especially credit uptake from informal sources. Households with mobile phones are found to have 4%–14% higher probabilities of credit uptake and about 6%–17% in the case of credit from informal sources. Besides, households with mobile phones are found to have about ETB 65 (USD 3.42) higher loan size and about ETB 78 (USD 4.11) higher amount of loan in the case of a loan from the informal sources. Thus, policy-makers and financial providers working on providing credit in rural areas need to exploit the use of mobile phones in reaching out to the rural poor.Originality/valueThe author attests the fact that the work described has not been published previously and that it is not under consideration for publication elsewhere. Besides, it is the original work of the author.

This paper takes a parametric approach to demand analysis and tests the weak separability assumptions that are often implicitly made in representative agent models of modern macroeconomics. The approach allows estimation and testing in a systems-of-equations context, using the minflex Laurent flexible functional form for the underlying utility function and relaxing the assumption of fixed consumer preferences by assuming Markov regime switching. We generate inference consistent with both theoretical and econometric regularity. We strongly reject weak separability of consumption and leisure from real money balances as well as weak separability of consumption from leisure and real money balances, meaning that the inclusion of a money in economic models would be of quantitative importance. We also investigate the substitutability/complementarity relationship among different categories of personal consumption expenditure (nondurables, durables, and services), leisure, and money. We find that the goods are net Morishima substitutes, but because of positive income effects they are gross complements. The implications for monetary policy are also briefly discussed.

The portfolio-balance approach to exchange rate determination is part of the Asset Market Models and is largely attributed to economists after 1973 when the exchange rate became flexible (market determined). This article first introduces the setting of the model embedded in the portfolio balance approach that encompasses two assets (money and bonds), which deviates a little from the models and approaches used for the monetary approach to the balance of payment, the overshooting model, and from the associated market equilibria. The effects of monetary policy, of current account, and of wealth under the portfolio-balance approach are examined, here, theoretically and empirically. The current econometric results show that the exchange rate is determined by the foreign bonds, the domestic interest rate, and the foreign interest rate. JEL classification numbers: F31, F47, E52, E41, C52, E21, E43. Keywords: Foreign Exchange, Forecasting and Simulation, Monetary Policy, Demand for Money, Model Evaluation and Testing, Consumption and Saving, Interest Rates.

Purpose Macro models are being developed in Islamic economics literature. These models, in general, follow the program of Islamization of knowledge and combine the genuine characteristics of Islamic economics with the tools of mainstream economics. The founding leader of Millî Görüs movement in Turkey, Necmettin Erbakan, and a group of Islamic intellectuals, had developed an economic program known as the just system. This paper aims to attempt to model the just economic system (the JES) with appropriate econometric techniques. Design/methodology/approach This paper models the macroeconomics of the JES with linear equations and conducts a series of simulations to identify its outputs. Based on the closed economy assumption, this paper describes the production function with a government share, defines a charitable foundation sector, exclude the speculation motive in money demand. Savings are transferred into investments without interest. This paper also develops an econometric simultaneous-equation model of the JES. Findings According to the results obtained from the selected simulation scenarios, this paper concludes that the macroeconomic JES works well and produces desirable outputs as it was stated in the original program. Research limitations/implications In future studies, the econometric estimations of the JES can be made. By adding more equations to the simple model, a medium or large scale JES macroeconomic model can be developed. Practical implications The JES can now be a source of economic policy designs. Social implications The model can be used to address socioeconomic objectives. Originality/value It is the only Islamic economic model that has been ever developed in Turkey. The notion of the JES has not been subjected to enough economic analysis and as far as it is known, it has not yet been modeled and simulated.

The purchasing power parity doctrine in determining exchange rate changes focuses on price factor changes (Jiang, Li, Chang, & Su, 2013)This study examines how currency and interest rates interact with each other to achieve a balance position in the foreign exchange market.Through this approach the exchange rate is determined by the balance of demand and supply between two currencies. This approach also explains how the influence of economic variables such as money supply, national income, price level, and interest rate on the formation of currency rates. Data using the first quarter of 2000 through the fourth quarter of 2013, With econometric analysis through cointegration approach and Error Correction Model will be tested the validity of interest rate parity condition in Indonesi.Estimation of the error correction model variable (V), indicating that the variable passed the t test at 5% confidence level. It indicates that the models specification is acceptable and there is cointegration between the observed variables.

Abstract In Italy, productivity had a turning point in the second half of the 1990s, when it went into decline. During the last few years, productivity in Italy has been sluggish, with an even more marked decreasing trend. Studies on companies’ performances, regarding productivity growth, have highlighted different aspects and various concomitant factors. Many analyses focused on the lack of investment and productivity differentials related to export activity. Indeed, productivity growth is a multidimensional problem that can be approached by following the evolution of various factors, such as profitability, labor costs, growth of aggregate demand, and investment. This work aims at identifying and analyzing, at the microlevel, the determinants of labor productivity over the whole period 2004–2013, and in the two sub-periods before and after the 2007 crisis. The goal is to determine the factors that have most influenced the change in the productivity of manufacturing companies in the period considered. Moreover, we focus on those elements that permit firms to survive a crisis, and on the presence of other factors that can, instead, accelerate a crisis. To carry out this analysis, firms have to be tracked over time, so a panel of companies’ financial reports was used to create a transition matrix, and econometric models are proposed to estimate productivity determinants. We highlight the centrality of the labor market in explaining the main economic evolution, also in recent years, and the factors that have pushed Italy’s move towards a labor-intensive development model.

In the 2019 documentary Chasing Happiness, recording artist/musician Joe Jonas tells audiences that the band was “living the dream”. Similarly, in the 2012 documentary Artifact, lead singer Jared Leto remarks that at the height of Thirty Seconds to Mars’s success, they “were living the dream”. However, for both the Jonas Brothers and Thirty Seconds to Mars, their experiences of the music industry (much like other commercially successful recording artists) soon transformed into nightmares. Similar to other commercially successful recording artists, the Jonas Brothers and Thirty Seconds to Mars, came up against the constraints of the industry which inevitably led to a forfeiting of authenticity, a loss of creative control, increased exploitation, and unequal remuneration. This work will consider how working in the music industry is not always a dream come true and can instead be viewed as a proverbial nightmare. Living the DreamIn his book Dreams, Carl Gustav Jung discusses how that which is experienced in sleep, speaks of a person’s wishes: that which might be desired in reality but may not actually happen. In his earlier work, The Interpretation of Dreams, Freud argued that the dream is representative of fulfilling a repressed wish. However, the creative industries suggest that a dream need not be a repressed wish; it can become a reality. Jon Bon Jovi believes that his success in the music industry has surpassed his wildest dreams (Atkinson). Jennifer Lopez considers the fact that she held big dreams, had a focussed passion, and strong aspirations the reason why she pursued a creative career that took her out of the Bronx (Thomas). In a Twitter post from 23 April 2018, Bruno Mars declared that he “use [sic] to dream of this shit,” in referring to a picture of him performing for a sold out arena, while in 2019 Shawn Mendes informed his 24.4 million Twitter followers that his “life is a dream”. These are but a few examples of successful music industry artists who are seeing their ‘wishes’ come true and living the American Dream.Endemic to the American culture (and a characteristic of the identity of the country) is the “American Dream”. It centres on “a land in which life should be better and richer and fuller for every man, with opportunity for each according to his ability and achievement” (Adams, 404). Although initially used to describe having a nice house, money, stability and a reasonable standard of living, the American Dream has since evolved to what the scholar Florida believes is the new ‘aspiration of people’: doing work that is enjoyable and relies on human creativity. At its core, the original American Dream required striving to meet individual goals, and was promoted as possible for anyone regardless of their cultural, socio-economic and political background (Samuel), because it encourages the celebrating of the self and personal uniqueness (Gamson). Florida’s conceptualisation of the New American dream, however, tends to emphasise obtaining success, fame and fortune in what Neff, Wissinger, and Zukin (310) consider “hot”, “creative” industries where “the jobs are cool”.Whether old or new, the American Dream has perpetuated and reinforced celebrity culture, with many of the young generation reporting that fame and fortune were their priorities, as they sought to emulate the success of their famous role models (Florida). The rag to riches stories of iconic recording artists can inevitably glorify and make appealing the struggle that permits achieving one’s dream, with celebrities offering young, aspiring creative people a means of identification for helping them to aspire to meet their dreams (Florida; Samuel). For example, a young Demi Lovato spoke of how she idolised and looked up to singer Beyonce Knowles, describing Knowles as a role model because of the way she carries herself (Tishgart). Similarly, American Idol winner Kelly Clarkson cited Aretha Franklin as her musical inspiration and the reason that she sings from a place deep within (Nilles). It is unsurprising then, that popular media has tended to portray artists working in the creative industries and being paid to follow their passions as “a much-vaunted career dream” (Duffy and Wissinger, 4656). Movies such as A Star Is Born (2018), The Coal Miner’s Daughter (1980), Dreamgirls (2006), Begin Again (2013) and La La Land (2016) exalt the perception that creativity, talent, sacrifice and determination will mean dreams come true (Nicolaou). In concert with the American dream is the drive among creative people pursuing creative success to achieve their dreams because of the perceived autonomy they will gain, the chance of self-actualisation and social rewards, and the opportunity to fulfil intrinsic motivations (Amabile; Auger and Woodman; Cohen). For these workers, the love of creation and the happiness that accompanies new discoveries (Csikszentmihalyi) can offset the tight budgets and timelines, precarious labour (Blair, Grey, and Randle; Hesmondhalgh and Baker), uncertain demand (Caves; Shultz), sacrifice of personal relationships (Eikhof and Haunschild), the demand for high quality products (Gil & Spiller), and the tense relationships with administrators (Bilton) which are known to plague these industries. In some cases, young, up and coming creative people overlook these pitfalls, instead romanticising creative careers as ideal and worthwhile. They willingly take on roles and cede control to big corporations to “realize their passions [and] uncover their personal talent” (Bill, 50). Of course, as Ursell argues in discussing television employees, such idealisation can mean creatives, especially those who are young and unfamiliar with the constraints of the industry, end up immersed in and victims of the “vampiric” industry that exploits workers (816). They are socialised towards believing, in this case, that the record label is a necessary component to obtain fame and fortune and whether willing or unwilling, creative workers become complicit in their own exploitation (Cohen). Loss of Control and No CompensationThe music industry itself has been considered by some to typify the cultural industries (Chambers). Popular music has potency in that it is perceived as speaking a universal language (Burnett), engaging the emotions and thoughts of listeners, and assisting in their identity construction (Burnett; Gardikiotis and Baltzis). Given the place of music within society, it is not surprising that in 2018, the global music industry was worth US$19.1billion (IFPI). The music industry is necessarily underpinned by a commercial agenda. At present, six major recording companies exist and between them, they own between 70-80 per cent of the recordings produced globally (Konsor). They also act as gatekeepers, setting trends by defining what and who is worth following and listening to (Csikszentmihalyi; Jones, Anand, and Alvarez). In essence, to be successful in the music industry is to be affiliated with a record label. This is because the highly competitive nature and cluttered environment makes it harder to gain traction in the market without worthwhile representation (Moiso and Rockman). In the 2012 documentary about Thirty Seconds to Mars, Artifact, front man Jared Leto even questions whether it is possible to have “success without a label”. The recording company, he determines, “deal with the crappy jobs”. In a financially uncertain industry that makes money from subjective or experience-based goods (Caves), having a label affords an artist access to “economic capital for production and promotion” that enables “wider recognition” of creative work (Scott, 239). With the support of a record label, creative entrepreneurs are given the chance to be promoted and distributed in the creative marketplace (Scott; Shultz). To have a record label, then, is to be perceived as legitimate and credible (Shultz).However, the commercial music industry is just that, commercial. Accordingly, the desire to make money can see the intrinsic desires of musicians forfeited in favour of standardised products and a lack of remuneration for artists (Negus). To see this standardisation in practice, one need not look further than those contestants appearing on shows such as American Idol or The Voice. Nowhere is the standardisation of the music industry more evident than in Holmes’s 2004 article on Pop Idol. Pop Idol first aired in Britain from 2001-2003 and paved the way for a slew of similar shows around the world such as Australia’s Popstars Live in 2004 and the global Idol phenomena. According to Holmes, audiences are divested of the illusion of talent and stardom when they witness the obvious manufacturing of musical talent. The contestants receive training, are dressed according to a prescribed image, and the show emphasises those melodramatic moments that are commercially enticing to audiences. Her sentiments suggest these shows emphasise the artifice of the music industry by undermining artistic authenticity in favour of generating celebrities. The standardisation is typified in the post Idol careers of Kelly Clarkson and Adam Lambert. Kelly Clarkson parted with the recording company RCA when her manager and producer Clive Davis told her that her album My December (2007) was “not commercial enough” and that Clarkson, who had written most of the songs, was a “shitty writer… who should just shut up and sing” (Nied). Adam Lambert left RCA because they wanted him to make a full length 80s album comprised of covers. Lambert commented that, “while there are lots of great songs from that decade, my heart is simply not in doing a covers album” (Lee). In these instances, winning the show and signing contracts led to both Clarkson and Lambert forfeiting a degree of creative control over their work in favour of formulaic songs that ultimately left both artists unsatisfied. The standardisation and lack of remuneration is notable when signing recording artists to 360° contracts. These 360° contracts have become commonplace in the music industry (Gulchardaz, Bach, and Penin) and see both the material and immaterial labour (such as personal identities) of recording artists become controlled by record labels (Stahl and Meier). These labels determine the aesthetics of the musicians as well as where and how frequently they tour. Furthermore, the labels become owners of any intellectual property generated by an artist during the tenure of the contract (Sanders; Stahl and Meier). For example, in their documentary Show Em What You’re Made Of (2015), the Backstreet Boys lament their affiliation with manager Lou Pearlman. Not only did Pearlman manufacture the group in a way that prevented creative exploration by the members (Sanders), but he withheld profits to the point that the Backstreet Boys had to sue Pearlman in order to gain access to money they deserved. In 2002 the members of the Backstreet Boys had stated that “it wasn’t our destinies that we had to worry about in the past, it was our souls” (Sanders, 541). They were not writing their own music, which came across in the documentary Show Em What You’re Made Of when singer Howie Dorough demanded that if they were to collaborate as a group again in 2013, that everything was to be produced, managed and created by the five group members. Such a demand speaks to creative individuals being tied to their work both personally and emotionally (Bain). The angst encountered by music artists also signals the identity dissonance and conflict felt when they are betraying their true or authentic creative selves (Ashforth and Mael; Ashforth and Humphrey). Performing and abiding by the rules and regulations of others led to frustration because the members felt they were “being passed off as something we aren’t” (Sanders 539). The Backstreet Boys were not the only musicians who were intensely controlled and not adequately compensated by Pearlman. In the documentary The Boy Band Con: The Lou Pearlman Story 2019, Lance Bass of N*Sync and recording artist Aaron Carter admitted that the experience of working with Pearlman became a nightmare when they too, were receiving cheques that were so small that Bass describes them as making his heart sink. For these groups, the dream of making music was undone by contracts that stifled creativity and paid a pittance.In a similar vein, Thirty Seconds to Mars sought to cut ties with their record label when they felt that they were not being adequately compensated for their work. In retaliation EMI issued Mars with a US$30 million lawsuit for breach of contract. The tense renegotiations that followed took a toll on the creative drive of the group. At one point in the documentary Artifact (2012), Leto claims “I can’t sing it right now… You couldn’t pay me all the money in the world to sing this song the way it needs to be sung right now. I’m not ready”. The contract subordination (Phillips; Stahl and Meier) that had led to the need to renegotiate financial terms came at not only a financial cost to the band, but also a physical and emotional one. The negativity impacted the development of the songs for the new album. To make music requires evoking necessary and appropriate emotions in the recording studio (Wood, Duffy, and Smith), so Leto being unable to deliver the song proved problematic. Essentially, the stress of the lawsuit and negotiations damaged the motivation of the band (Amabile; Elsbach and Hargadon; Hallowell) and interfered with their creative approach, which could have produced standardised and poor quality work (Farr and Ford). The dream of making music was almost lost because of the EMI lawsuit. Young creatives often lack bargaining power when entering into contracts with corporations, which can prove disadvantaging when it comes to retaining control over their lives (Phillips; Stahl and Meier). Singer Demi Lovato’s big break came in the 2008 Disney film Camp Rock. As her then manager Phil McIntyre states in the documentary Simply Complicated (2017), Camp Rock was “perceived as the vehicle to becoming a superstar … overnight she became a household name”. However, as “authentic and believable” as Lovato’s edginess appeared, the speed with which her success came took a toll on Lovato. The pressure she experienced having to tour, write songs that were approved by others, star in Disney channel shows and movies, and look a certain way, became too much and to compensate, Lovato engaged in regular drug use to feel free. Accordingly, she developed a hybrid identity to ensure that the squeaky clean image required by the moral clauses of her contract, was not tarnished by her out-of-control lifestyle. The nightmare came from becoming famous at a young age and not being able to handle the expectations that accompanied it, coupled with a stringent contract that exploited her creative talent. Lovato’s is not a unique story. Research has found that musicians are more inclined than those in other workforces to use psychotherapy and psychotropic drugs (Vaag, Bjørngaard, and Bjerkeset) and that fame and money can provide musicians more opportunities to take risks, including drug-use that leads to mortality (Bellis, Hughes, Sharples, Hennell, and Hardcastle). For Lovato, living the dream at a young age ultimately became overwhelming with drugs her only means of escape. AuthenticityThe challenges then for music artists is that the dream of pursuing music can come at the cost of a musician’s authentic self. According to Hughes, “to be authentic is to be in some sense real and true to something ... It is not simply an imitation, but it is sincere, real, true, and original expression of its creator, and is believable or credible representations or example of what it appears to be” (190). For Nick Jonas of the Jonas Brothers, being in the spotlight and abiding by the demands of Disney was “non-stop” and prevented his personal and musical growth (Chasing Happiness). As Kevin Jonas put it, Nick “wanted the Jonas Brothers to be no more”. The extensive promotion that accompanies success and fame, which is designed to drive celebrity culture and financial motivations (Currid-Halkett and Scott; King), can lead to cynical performances and dissatisfaction (Hughes) if the identity work of the creative creates a disjoin between their perceived self and aspirational self (Beech, Gilmore, Cochrane, and Greig). Promoting the band (and having to film a television show and movies he was not invested in all because of contractual obligations) impacted on Nick’s authentic self to the point that the Jonas Brothers made him feel deeply upset and anxious. For Nick, being stifled creatively led to feeling inauthentic, thereby resulting in the demise of the band as his only recourse.In her documentary Gaga: Five Foot Two (2017), Lady Gaga discusses the extent she had to go to maintain a sense of authenticity in response to producer control. As she puts it, “when producers wanted me to be sexy, I always put some absurd spin on it, that made me feel like I was still in control”. Her words reaffirm the perception amongst scholars (Currid-Halkett and Scott; King; Meyers) that in playing the information game, industry leaders will construct an artist’s persona in ways that are most beneficial for, in this case, the record label. That will mean, for example, establishing a coherent life story for musicians that endears them to audiences and engaging recording artists in co-branding opportunities to raise their profile and to legitimise them in the marketplace. Such behaviour can potentially influence the preferences and purchases of audiences and fans, can create favourability, originality and clarity around artists (Loroz and Braig), and can establish competitive advantage that leads to producers being able to charge higher prices for the artists’ work (Hernando and Campo). But what impact does that have on the musician? Lady Gaga could not continue living someone else’s dream. She found herself needing to make changes in order to avoid quitting music altogether. As Gaga told a class of university students at the Emotion Revolution Summit hosted by Yale University:I don’t like being used to make people money. It feels sad when I am overworked and that I have just become a money-making machine and that my passion and creativity take a backseat. That makes me unhappy.According to Eikof and Haunschild, economic necessity can threaten creative motivation. Gaga’s reaction to the commercial demands of the music industry signal an identity conflict because her desire to create, clashed with the need to be commercial, with the outcome imposing “inconsistent demands upon” her (Ashforth and Mael, 29). Therefore, to reduce what could be considered feelings of dissonance and inconsistency (Ashforth and Mael; Ashforth and Humphrey) Gaga started saying “no” to prevent further loss of her identity and sense of authentic self. Taking back control could be seen as a means of reorienting her dream and overcoming what had become dissatisfaction with the commercial processes of the music industry. ConclusionsFor many creatives working in the creative industries – and specifically the music industry – is constructed as a dream come true; the working conditions and expectations experienced by recording artists are far from liberating and instead can become nightmares to which they want to escape. The case studies above, although likely ‘constructed’ retellings of the unfortunate circumstances encountered working in the music industry, nevertheless offer an inside account that contradicts the prevailing ideology that pursuing creative passions leads to a dream career (Florida; Samuel). If anything, the case studies explored above involving 30 Seconds to Mars, the Jonas Brothers, Lady Gaga, Kelly Clarkson, Adam Lambert and the Backstreet Boys, acknowledge what many scholars writing in the creative industries have already identified; that exploitation, subordination, identity conflict and loss of control are the unspoken or lesser known consequences of pursuing the creative dream. That said, the conundrum for creatives is that for success in the industry big “creative” businesses, such as recording labels, are still considered necessary in order to break into the market and to have prolonged success. This is simply because their resources far exceed those at the disposal of independent and up-and-coming creative entrepreneurs. Therefore, it can be argued that this friction of need between creative industry business versus artists will be on-going leading to more of these ‘dream to nightmare’ stories. The struggle will continue manifesting in the relationship between business and artist for long as the recording artists fight for greater equality, independence of creativity and respect for their work, image and identities. 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