Cover -- Half-title -- Title -- Copyright -- Contents -- Figures and tables -- FIGURES -- TABLES -- Preface -- PART ONE The arts sector: Size, growth, and audiences -- 1 An overview of the arts sector -- COVERAGE OF THIS BOOK -- ART AND CULTURE AS A SUBJECT OF ECONOMIC INQUIRY -- ESTIMATING THE SIZE OF THE ARTS SECTOR -- 2 Growth of the arts sector -- MEASURING GROWTH -- COMPETITION AMONG FORMS OF RECREATION -- The impact of television -- GROWTH OF THE ARTS SINCE 1970 -- Slowdown begins in the late 1980s -- INFLUENCE OF CHANGES ON THE SUPPLY SIDE -- INTERNATIONAL DATA ON ARTS ACTIVITY -- INSTITUTIONAL CHANGE IN THE PERFORMING ARTS -- Theater -- Dance -- Opera -- Symphony orchestras -- Relative sizes of the four sectors of the performing arts -- SUMMARY -- 3 Audiences for the arts -- AUDIENCE SURVEYS VERSUS PARTICIPATION STUDIES -- PARTICIPATION RATES IN THE UNITED STATES -- SOME INTERNATIONAL COMPARISONS -- HOW DO PARTICIPATION RATES VARY IN THE POPULATION? -- Education versus income -- Arts participation and the mass media -- AUDIENCE CHARACTERISTICS -- Audience characteristics over time -- PART TWO The microeconomics of demand and supply -- 4 Consumer demand: An introduction -- MEASURING THE UTILITY OF CONSUMPTION -- CONSUMER BUDGET OPTIMIZATION -- DERIVING DEMAND CURVES -- The market demand curve -- DEMAND, SUPPLY, AND THE DETERMINATION OF PRICE -- Ticket pricing on Broadway -- The problem of inflexible ticket prices -- THE DETERMINANTS OF DEMAND -- Income -- Taste -- Prices of related goods -- A hypothetical demand function -- Shifting of demand curves -- Supply and demand with shifting demand curves -- What if many variables change simultaneously? -- SUMMARY -- 5 The characteristics of arts demand and their policy implications -- THE PRICE ELASTICITY OF DEMAND -- Explaining differences in price elasticity.

Price elasticity and total revenue -- Price, total revenue, and marginal revenue -- Deriving elasticity values from a demand equation -- THE INCOME ELASTICITY OF DEMAND -- Income elasticity, consumer budgets, and industry growth -- Deriving income elasticity from a demand equation -- CROSS-PRICE ELASTICITY OF DEMAND -- Deriving cross-price elasticities from a demand equation -- EXPECTED VALUES OF THE PRICE ELASTICITY OF DEMAND IN THE PERFORMING ARTS -- Empirical results and their implications: Price elasticity -- EXPECTED VALUE OF THE INCOME ELASTICITY OF DEMAND IN THE PERFORMING ARTS -- Empirical results: Income elasticity -- SUMMARY -- 6 Production in the performing arts -- THE MEASUREMENT OF OUTPUT -- OUTPUT IN THE PERFORMING ARTS -- SOME BASIC COST CONCEPTS -- PRODUCTION COSTS -- Production costs for a theatrical enterprise -- How unit cost varies with output -- The arts as a special case -- SUMMARY -- 7 Firms and markets in the performing arts -- TYPES OF MARKETS -- Perfect competition -- Pure monopoly -- Monopolistic competition -- Oligopoly -- ARTISTIC AND FINANCIAL OBJECTIVES -- A MODEL OF THE FIRM IN THE LIVE PERFORMANCE ARTS -- Price, output, and profit in the commercial theater -- Price and output in the nonprofit sector -- PRODUCTION COSTS IN THE LONG RUN -- Economies of scale in the live performing arts -- THE EFFECTS OF DONATIONS AND GRANTS -- INSTITUTIONAL SIZE, MARKET STRUCTURE, AND INNOVATION -- Competition encourages artistic innovation -- SUMMARY -- 8 Productivity lag and the financial problem of the arts -- THE PRODUCTIVITY LAG ARGUMENT -- ALGEBRAIC EXPLANATION OF THE EFFECTS OF PRODUCTIVITY LAG -- A numerical example -- HISTORICAL EVIDENCE ON COSTS -- THE CONSEQUENCES OF PRODUCTIVITY LAG, OR, WHY WORRY ABOUT IT? -- OFFSETS TO THE EFFECTS OF PRODUCTIVITY LAG -- The effect of rising living standards.

The effect of economies of scale -- Income from the mass media -- COMPETITION WITH THE MASS MEDIA FOR INPUTS -- PRODUCTIVITY LAG AND THE GROWTH OF MUSIC FESTIVALS -- COSTS AND REVENUES IN THE PERFORMING ARTS -- The role of presenting organizations -- EARNED VERSUS UNEARNED INCOME -- The earnings gap -- Is the earnings gap growing? -- Interpreting the earnings gap -- IS THERE AN "ARTISTIC DEFICIT"? -- CONCLUSION -- PART THREE The fine arts and museums -- 9 The market in works of art -- SOME PRELIMINARY CONSIDERATIONS -- ARTS MARKETS -- The primary market -- The secondary market -- THE SUPPLY OF ART -- THE DEMAND FOR ART -- Wealth -- Expected return -- Risk -- Liquidity -- Tastes and preferences -- ART AS INVESTMENT -- 10 The economics of art museums -- WHAT DO MUSEUMS DO? -- ATTENDANCE AT ART MUSEUMS -- A PROFILE OF MUSEUM VISITORS -- MUSEUMS AS A DECREASING COST INDUSTRY -- Full cost versus marginal cost pricing -- Entrance fees and equity considerations -- ENTRANCE FEES AND OVERALL FISCAL HEALTH -- ACQUISITION POLICIES OF ART MUSEUMS -- MANAGING A MUSEUM'S COLLECTION -- The problem of "deaccessioning" -- SOME QUESTIONS OF DISTRIBUTION -- Collection sharing and franchising on a large scale -- Special exhibitions, tours, blockbusters! -- A NOTE ON "SUPERSTAR" MUSEUMS -- MUSEUM REVENUES -- Contributed private support -- Federal assistance to museums -- The Institute for Museum and Library Services -- The National Endowment for the Arts -- The National Endowment for the Humanities -- STATE AND LOCAL GOVERNMENT SUPPORT -- CONCLUSION -- PART FOUR Public policy toward the arts -- 11 Should the government subsidize the arts? -- OPTIMIZATION IN PERFECTLY COMPETITIVE MARKETS -- THE PROBLEM OF MARKET FAILURE -- Monopoly -- Externalities or collective benefits -- Do the arts produce collective benefits? -- EXTERNAL BENEFITS AS PUBLIC GOODS.

Declining cost industries -- Lack of information -- Productivity lag and subsidies for the arts -- EQUITY AND THE DISTRIBUTION OF INCOME -- MERIT GOODS -- Egalitarian arguments -- Arts subsidies and the distribution of income -- Merit goods -- SUMMARY -- THE CASE AGAINST PUBLIC SUBSIDIES -- No relevant external benefits -- Subsidies and the distribution of income -- Subsidies actually harm the arts -- Banfield's argument -- A constitutional argument -- 12 Public and/or private support for the arts in the United States, Australia, Canada, and Western Europe -- TRADITIONAL OPPOSITION TO PUBLIC SUPPORT IN THE UNITED STATES -- A change of heart in the 1960s -- Birth of the New York State Council on the Arts and the National Endowment for the Arts -- AN INTERNATIONAL COMPARISON OF ARTS SUPPORT -- THE MATHEMATICS OF INDIRECT AID, OR TAX EXPENDITURES -- DONATING WORKS OF ART -- INDIVIDUAL, CORPORATE, AND FOUNDATION SUPPORT -- Motives for charitable giving -- WHY SO LITTLE PRIVATE SUPPORT FOR THE ARTS IN EUROPE? -- ADVANTAGES AND DISADVANTAGES OF PRIVATE AND/OR PUBLIC SUPPORT -- The question of stability -- Interference with artistic freedom -- POLITICAL CONTROVERSY OVER CONTROVERSIAL ART -- Report of the independent commission -- CONCLUSION -- 13 Direct public support for the arts in the United States -- THE COMPONENTS OF DIRECT PUBLIC SUPPORT IN THE UNITED STATES -- State government support -- Interstate variation in appropriations for the arts -- The division of functions between levels of government -- STRUCTURE AND GRANT-MAKING PROCEDURES OF THE NATIONAL ENDOWMENT FOR THE ARTS -- AN OUTLINE OF NATIONAL ENDOWMENT FOR THE ARTS PROGRAMS -- The NEA and the states -- What does the NEA actually do? -- Grants to organizations -- Creation and presentation -- Education and access -- Heritage and preservation -- Planning and stabilization.

What are matching grants? -- Should subsidies go to the buyer instead of the seller? -- PATTERNS OF STATE AID -- LOCAL ARTS AGENCIES -- What local arts agencies do -- Supporting major cultural institutions -- ISSUES IN PUBLIC POLICY -- The politics of funding -- Elitism versus populism -- Grants to institutions versus grants to individual artists -- Decency tests -- PART FIVE Art, economy, and society -- 14 The arts as a profession: Education, training, and employment -- DATA ON ARTISTS FROM THE SURVEY OF PUBLIC PARTICIPATION IN THE ARTS -- INFORMATION FROM AN ARTIST SURVEY -- LABOR MARKETS IN THE ARTS -- Labor market theory and the arts -- The demand for artists -- The supply of artists -- SOME REALITIES OF THE MARKET FOR ARTISTS -- Unions and the performing arts -- The superstar -- The visual arts -- BECOMING AN ARTIST: INVESTMENT IN HUMAN CAPITAL -- A SUMMATION -- 15 The role of the arts in a local economy -- THE CONCENTRATION OF ART AND CULTURE IN URBAN CENTERS -- The role of economies of agglomeration -- Artists per 10,000 of population -- The special cases of New York and Los Angeles -- LOCATIONAL PATTERNS IN THE VISUAL ARTS -- CONCENTRATION OR DECONCENTRATION OVER TIME? -- MEASURING THE RELATIVE SIZE OF THE LOCAL ARTS SECTOR -- ECONOMIC IMPACT STUDIES -- Direct spending -- Indirect and induced spending -- MULTIPLIER EFFECTS -- THE ARTS INDUSTRY IN THE NEW YORK METROPOLITAN AREA -- The arts as an export industry -- The art industry in six smaller U.S. cities -- Arts audiences and arts exports -- HAVE ECONOMIC IMPACT STUDIES BEEN MISUSED? -- How to misinterpret an economic impact study -- THE ARTS AND THE LOCAL QUALITY OF LIFE -- 16 The mass media, public broadcasting, and the cultivation of taste -- IMPACT OF THE MASS MEDIA -- Radio -- Television -- Some caveats -- FEDERAL REGULATION OF BROADCASTING -- The decentralization objective.

THE QUALITY OF COMMERCIAL BROADCAST PROGRAMMING.