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Causality and Museum Subsidies

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  • David Maddison

Abstract

Although museums are major recipients of public money, very little is known regarding what factors cause changes in the level of funding given to particular institutions. It is nevertheless regularly asserted by those affected that governments will reduce the level of subsidy going to those museums that raise revenues for themselves, especially if these revenues were raised through charging for admission. This paper explores the causal influences underlying changes in the level of government grants to museums. Statistically analysing data drawn from a panel of UK museums funded by central government, evidence is found that increases in non-grant income do indeed result in a statistically significant reduction in future government subsidies. It is however unclear whether these reductions are sufficient to offset entirely the financial benefits from charging or the pursuit of private benefactors. Despite the government's avowed intention to widen access to museums, changes in visitor numbers do not appear to cause changes in government grants. Copyright Kluwer Academic Publishers 2004

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Bibliographic Info

Article provided by Springer in its journal Journal of Cultural Economics.

Volume (Year): 28 (2004)
Issue (Month): 2 (May)
Pages: 89-108

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Handle: RePEc:kap:jculte:v:28:y:2004:i:2:p:89-108

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Web page: http://www.springerlink.com/link.asp?id=100284

Related research

Keywords: causality; crowding out; museums; subsidies;

References

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  1. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
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  4. John W. O'Hagan, 1995. "National Museums: To Charge or not to charge?," Economics Policy Papers 952, Trinity College Dublin, Department of Economics.
  5. Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October.
  6. Peter Johnson & Barry Thomas, 1998. "The Economics of Museums: A Research Perspective," Journal of Cultural Economics, Springer, vol. 22(2), pages 75-85, June.
  7. William Luksetich & Mark Partridge, 1997. "Demand functions for museum services," Applied Economics, Taylor & Francis Journals, vol. 29(12), pages 1553-1559.
  8. Stephen Bailey & Peter Falconer, 1998. "Charging for Admission to Museums and Galleries: A Framework for Analysing the Impact on Access," Journal of Cultural Economics, Springer, vol. 22(2), pages 167-177, June.
  9. David Maddison & Terry Foster, 2003. "Valuing congestion costs in the British Museum," Oxford Economic Papers, Oxford University Press, vol. 55(1), pages 173-190, January.
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Cited by:
  1. Drevs, Florian & Tscheulin, Dieter K. & Lindenmeier, Jörg & Renner, Simone, 2014. "Crowding-in or crowding out: An empirical analysis on the effect of subsidies on individual willingness-to-pay for public transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 250-261.
  2. Frey, Bruno S. & Meier, Stephan, 2006. "The Economics of Museums," Handbook of the Economics of Art and Culture, Elsevier.
  3. Juan Prieto-Rodríguez & Víctor Fernández-Blanco, 2006. "Optimal pricing and grant policies for museums," Journal of Cultural Economics, Springer, vol. 30(3), pages 169-181, December.
  4. Silvia Fedeli & Michele Santoni, 2006. "The Government's Choice of Bureaucratic Organisation: An Application to Italian State Museums," Journal of Cultural Economics, Springer, vol. 30(1), pages 41-72, March.
  5. Bruno S. Frey & Lasse Steiner, 2010. "Pay as you Go: A New Proposal for Museum Pricing," CESifo Working Paper Series 3045, CESifo Group Munich.
  6. JG. Brida & M. Pulina & E. Riaño, 2010. "Visitors’ experience in a modern art museum: a structural equation model," Working Paper CRENoS 201026, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  7. Brida, Juan Gabriel & Monterubbianesi, Pablo Daniel & Zapata Aguirre, Sandra, 2012. "Análisis de los factores que afectan la repetición de la visita a una atracción cultural: una aplicación al museo de Antioquia
    [Analysis of factors affecting repeat visit to a cultural attracti
    ," MPRA Paper 37622, University Library of Munich, Germany.

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