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Demand for Live Orchestral Music – The Case of German Kulturorchester

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  • Marta Zieba

    ()
    (Trinity College Dublin)

  • John O'Hagan

    ()
    (Trinity College Dublin)

Abstract

This paper estimates a demand function for orchestras in Germany and in the process provides estimates of the impact of various determinants of demand for live orchestral music. Price and income are shown to be highly significant as are the quality factors included. The price elasticity is around -0.3 indicating price-inelastic demand and the income elasticity roughly 1.0 which is shown to be the net effect of two opposing forces, a gross income effect and a price-of-leisure effect. Additionally, two objective output characteristics which can positively influence concert attendance are examined. This analysis was undertaken by applying an exceptionally large panel data set for 79 orchestras over the period from 1972 to 2004 (1,313 observations). No previous study of orchestra demand was based on such a rich data set, nor used such a range of extensive variables. Some policy implications are considered in the concluding section.

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Bibliographic Info

Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

Volume (Year): 233 (2013)
Issue (Month): 2 (March)
Pages: 225-245

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Handle: RePEc:jns:jbstat:v:233:y:2013:i:2:p:225-245

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Related research

Keywords: Symphony concerts demand; performing arts; leisure time; quality; Germany;

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References

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  1. Gapinski, James H, 1984. "The Economics of Performing Shakespeare," American Economic Review, American Economic Association, vol. 74(3), pages 458-66, June.
  2. James H. Stock & Mark W. Watson, 2006. "Heteroskedasticity-Robust Standard Errors for Fixed Effects Panel Data Regression," NBER Technical Working Papers 0323, National Bureau of Economic Research, Inc.
  3. Kristien Werck & Bruno Heyndels, 2007. "Programmatic choices and the demand for theatre: the case of Flemish theatres," Journal of Cultural Economics, Springer, vol. 31(1), pages 25-41, March.
  4. Seaman, Bruce A, 2006. "Empirical Studies of Demand for the Performing Arts," Handbook of the Economics of Art and Culture, Elsevier.
  5. Günther Schulze & Anselm Rose, 1998. "Public Orchestra Funding in Germany – An Empirical Investigation," Journal of Cultural Economics, Springer, vol. 22(4), pages 227-247, December.
  6. Enrico Böhme & Christopher Müller, 2011. "Searching for the Concentration-Price Effect in the German Movie Theater Industry," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 231(4), pages 479-493, August.
  7. Marta Zieba, 2011. "An Analysis of Technical Efficiency and Efficiency Factors for Austrian and Swiss Non-Profit Theatres," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 147(II), pages 233-274, June.
  8. Owen, John D, 1971. "The Demand for Leisure," Journal of Political Economy, University of Chicago Press, vol. 79(1), pages 56-76, Jan.-Feb..
  9. John O’Hagan & Marta Zieba, 2010. "Output Characteristics and Other Determinants of Theatre Attendance--An Econometric Analysis of German Data," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 56(2), pages 147-174.
  10. Marta Zieba, 2009. "Full-income and price elasticities of demand for German public theatre," Journal of Cultural Economics, Springer, vol. 33(2), pages 85-108, May.
  11. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
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