Abstract
Our paper analyzes the conduct of German public performing arts institutions in terms of “non-market decision making” or public choice. Apart from consumers of performing arts managers of performing arts institutions and public donors are main agents. A manager of a performing arts institution will not assume that the number of visitors is independent of his institution's programme or the ticket prices. By the same reasoning he will regard the amount of public subsidies not as exogenous, but dependent on his own policy. If future grants depend on present and past success (however defined), this will feed back into managerial decisions, along with expectations about demand. Data for the Federal Republic of Germany serve to empirically support the theoretical argument.
Article PDF
Similar content being viewed by others
Avoid common mistakes on your manuscript.
References
Abbé-Decarroux, François (1990)La demande de services culturels: une analyse économique. PhD. Dissertation, University of Geneva.
Abbé-Decarroux, François (1994) “The Perception of Quality and the Demand for Services”,Journal of Economic Behavior and Organisation 23: 99–107.
Abbé-Decarroux, François and Grin, François (1992) “Risk, Risk Aversion, and the Demand for Performing Arts”, in Towse and Khakee (1992) 125–140.
Austen-Smith, David (1984) “Subsidies to the Arts with Multiple Public Donors”Economic Record, Supplement, 60: 381–391.
Austen-Smith, David and Jenkins, Stephen (1985) “A Multiperiod Model of Nonprofit Enterprises”.Scottish Journal of Political Economy 32: 119–134.
Baumol, Hilda and Baumol, William G. (eds.) (1984)Inflation and the Performing Arts. New York University Press, New York.
Becker, Gary S. and Kevin M. Murphy (1988) “A Theory of Rational Addiction”.Journal of Political Economy 96: 675–700.
Bonato, Leo, Gagliardi, Francesco and Gorelli, Stefano (1990) “The Demand for Live Performing Arts in Italy”.Journal of Cultural Economics 14: 41–52.
Cameron, Samuel (1986) “The Supply and Demand for Cinema Tickets: Some U.K. Evidence”.Journal of Cultural Economics 10: 38–62.
Carson, Amy and Mobilia, Pamela (1989) “Broadway as an Industry: The Determinants of Broadway Attendance 1975–76 through 1987–88”, in Shawet al. (1989) 105–117.
Dupuis, Xavier (1983) “La surqualité: le spectacle subventionné malade de la bureaucratie?Revue Economique 34: 1089–1115.
Dupuis, Xavier (1985) “La micro-économie du spectacle vivant”, in Girard (1985) 71–97.
Farchy, Joëlle and Sagot-Duvaroux, Dominique (1994)Economie des politiques culturelles. Presses Universitaires de France, Paris.
Felton, Marianne V. (1989) “Major Influences on the Demand for Opera Tickets”, in Shawet al. (1989) 119–128.
Felton, Marianne V. (1992) “On the Assumed Inelasticity of Demand for the Performing Arts”.Journal of Cultural Economics 16: 1–12.
Frey, Bruno S. and Pommerehne, Werner W. (1990)Muses and Markets: Explorations in the Economics of the Arts (2nd ed.). Blackwell, Oxford.
Gapinski, James H. (1984) “The Economics of Performing Shakespeare”.American Economic Review, Papers and Proceedings 74: 458–466.
Gapinski, James H. (1986) “The Lively Arts as Substitutes for the Lively Arts”.American Economic Review, Papers and Proceedings 76: 20–25.
Gapinski, James H. (1988) “Tourism's Contribution to the Demand for London's Lively Arts”.Applied Economics 20: 957–968.
Gemerden, L.J. van (1989) “A Survey on the Cultural Economics of Opera”, in Waitset al. (1989) 5–13.
Girard, Augustin (ed.) (1985)L'économie du spectacle vivant et l'audiovisuel. Documentation Française, Paris.
Globerman, Steven and Book, Sam (1977) “Consumption Efficiency and Spectator Attendance”.Journal of Cultural Economics 1: 15–34.
Goudriaan, René and de Kam, Cornelis A. (1983) “Demand in the Performing Arts and the Effects of Subsidy”, in Hendonet al. (1983) 35–43.
Grant, Nancy K., Hendon, William S. and Owen, Virginia L. (eds.) (1987)Economic Efficiency and the Performing Arts. Akron University Press, Akron, Ohio.
Greckel, Fay R. and Felton, Marianne V. (1987) “Price and Income Elasticities of Demand: A Case Study of Louisville”, in Grantet al. (1987) 62–73.
Green, Richard D., Pope, Rulon D. and Phipps, Tim T. (1981) “Discriminating among Alternative Habit Formation Schemes in Single-Equation Demand Models”.Applied Economics 13: 399–409.
Hendon, William S., Shanahan, James L., Hilhorst, Izaak Th.H. and van Straalen, Jaap (eds.) (1983)Economic Research in the Performing Arts. Akron University Press, Akron, Ohio.
Hendon, William S., Shanahan, James L. and MacDonald, Alice (eds.) (1980)Economic Policy for the Arts. Abt, Cambridge, Mass.
Houthakker, Hendrik S. and Taylor, Lester D. (1970)Consumer Demand in the United States 1929–1970: Analysis and Projection (2nd ed.). Harvard University Press, Cambridge, Mass.
Jenkins, Stephen and Austen-Smith, David (1987) “Interdependent Decision-Making in Nonprofit Industries: A Simultaneous Equation Analysis of English Provincial Theatres”.International Journal of Industrial Organization 5: 149–174.
Kelejian, Harry H. and Lawrence, William J. (1980) “Estimating the Demand for Broadway Theatres: A Preliminary Inquiry”, in Hendonet al. (1980) 333–346.
Khakee, Abdul (1988) “The Rationale for Urban Government Actions for Arts Funding”.Journal of Cultural Economics 12: 1–18.
Lange, Mark D. and Luksetich, William A. (1984) “Demand Elasticities for Symphony Orchestras”.Journal of Cultural Economics 8: 29–47.
Le Pen, Claude (1982) “L'analyse microéconomique de la production dramatique et l'effet des subventions publiques”.Revue Economique 33: 639–674.
Levy, Emanuel (1988) “Art Critics and Art Publics: A Study in the Sociology and Politics of Taste”.Empirical Studies of the Art 6: 127–148.
Moore, Thomas G. (1966) “The Demand for Broadway Theatre Tickets”.Review of Economics and Statistics 48: 79–87.
Oteri, Mario and Trimarchi, Michele (1990) “Public Subsidies and Cultural Habits: An Empirical Test of Drama Attendance”.Rivista di Diritto Finanziario e Scienza delle Finanze 49: 524–537.
Peacock, Alan T., Shoesmith, Eddie and Millner, Geoffrey (1983)Inflation and the Performing Arts. Arts Council of Great Britain, London.
Phlips, Louis (1974)Applied Consumption Analysis. North Holland, Amsterdam.
Pommerehne, Werner W. (1982) “Steuern, Staatsausgaben und Stimmbürgerverhalten: Eine empirische Untersuchung am Beispiel der öffentlichen Subventionierung des Theaters”.Jahrbücher für Nationalökonomie und Statistik 197: 437–462.
Pommerehne, Werner W. and Frey, Bruno S. (1990) “Public Promotion of the Arts: A Survey of the Means”.Journal of Cultural Economics 14: 73–95.
Pommerehne, Werner W. and Kirchgässner, Gebhard (1987) “The Decline of Conventional Culture: The Impact of Television on the Demand for Cinema and Theatre Performances”, in Grantet al. (1987) 44–61.
Shaw, Douglas V., Hendon, William S. and Owen, Virginia L. (eds.) (1989)Cultural Economics 88: An American Perspective. Akron University Press, Akron.
Solf, Günter (1993)Theatersubventionierung: Möglichkeit einer Legitimation aus wirtschaftstheoretischer Sicht. Eul, Köln.
Stevens, Dana (1985) “The Social Efficiency of Arts Addiction”, in Waitset al. (1985) 43–53.
Stigler, George J. and Becker, Gary S. (1977) “De gustibus non est disputandum”.American Economic Review 67: 76–90.
Throsby, C. David (1983) “Perception of Quality in Demand for the Theatre”, in Shanahanet al. (1983) 6–18.
Throsby, C. David (1994) “The Production and Consumption of the Arts: A View of Cultural Economics”.Journal of Cultural Economics 32: 1–28.
Throsby, C. David and Withers, Glenn A. (1979)The Economics of the Performing Arts, Arnold, London and Melbourne.
Touchstone, Susan K. (1980) “The Effects of Contributions on Price and Attendance in the Lively Arts”.Journal of Cultural Economics 4: 34–46.
Towse, Ruth and Khakee, Abdul (eds.) (1992)Cultural Economics. Springer, Berlin, Heidelberg and New York.
Waits, C. Richard, Hendon, William S. and Horowitz, Harold (eds.) (1985)Governments and Culture. Akron University Press, Akron, Ohio.
Waits, C. Richard, Hendon, William S. and Schuster, J.M. Davidson (eds.) (1989)Cultural Economics 88: A European Perspective. Akron University Press, Akron, Ohio.
West, Edwin G. and McKee, Michael J. (1983) “De gustibus est disputandum: The Phenomenon of Merit Wants Revisited”.American Economic Review 73: 1110–1121.
Withers, Glenn A. (1979) “Private Demand for Public Subsidies: An Econometric Study of Cultural Support in Australia”.Journal of Cultural Economics 3: 53–64.
Withers, Glenn A. (1980) “Unbalanced Growth and the Demand for Performing Arts: An Econometric Analysis”.Southern Economic Journal 46: 735–742.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Krebs, S., Pommerehne, W.W. Politico-economic interactions of German public performing arts institutions. J Cult Econ 19, 17–32 (1995). https://doi.org/10.1007/BF01074430
Issue Date:
DOI: https://doi.org/10.1007/BF01074430