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Causality and Museum Subsidies

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Author Info
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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File URL: http://hdl.handle.net/10.1023/B:JCEC.0000019515.96628.f5
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Publisher 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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Related research
Keywords: causality; crowding out; museums; subsidies;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  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, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  2. Luksetich, William A & Partridge, Mark D, 1997. "Demand Functions for Museum Services," Applied Economics, Taylor and Francis Journals, vol. 29(12), pages 1553-59, December. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
  4. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-38, July. [Downloadable!] (restricted)
  5. Frey, Bruno S, 1994. "Cultural Economics and Museum Behaviour," Scottish Journal of Political Economy, Scottish Economic Society, vol. 41(3), pages 325-35, August.
  6. 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. [Downloadable!] (restricted)
  7. Peter Johnson & Barry Thomas, 1998. "The Economics of Museums: A Research Perspective," Journal of Cultural Economics, Springer, vol. 22(2), pages 75-85, June. [Downloadable!] (restricted)
  8. Douglas Holtz-Eakin & Whitney K. Newey & Harvey S. Rosen, 1989. "The Revenues-Expenditures Nexus: Evidence from Local Government Data," NBER Working Papers 2180, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  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.
  10. William A. Luksetich & Mark D. Partridge, 1997. "Demand functions for museum services," Applied Economics, Taylor and Francis Journals, vol. 29(12), pages 1553-1559, December. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. 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. [Downloadable!] (restricted)
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