Quality, service level, or empire: which is the objective of the nonprofit arts firm?
AbstractIn this article, we examine the objectives of nonprofit arts firms. We approach this problem from both theoretical and empirical angles, building a structural model of arts nonprofit utility that distinguishes between the maximization of quality, the organization’s level of service, and its budget. We then construct an empirical method for testing which objective is evident in firm-level data. As an example application, we test the objectives of the managers of American public radio stations in the 1990s, finding that about half of stations have discernible objectives. The data show service is not an objective for about 30% of the stations; quality can be ruled out for 49%; and budget is rejected for 69%. In addition, large stations are harder to classify by objective than small ones are. Copyright Springer Science+Business Media, LLC 2007
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Bibliographic InfoArticle provided by Springer in its journal Journal of Cultural Economics.
Volume (Year): 31 (2007)
Issue (Month): 2 (June)
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Web page: http://www.springerlink.com/link.asp?id=100284
Public radio; Charitable giving; Managerial objectives; Z11; L31;
Find related papers by JEL classification:
- Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
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- David Card & Alan B. Krueger, 1996. "Labor Market Effects of School Quality: Theory and Evidence," NBER Working Papers 5450, National Bureau of Economic Research, Inc.
- repec:pri:indrel:736 is not listed on IDEAS
- repec:fth:prinin:357 is not listed on IDEAS
- Throsby, David, 1994. "The Production and Consumption of the Arts: A View of Cultural Economics," Journal of Economic Literature, American Economic Association, vol. 32(1), pages 1-29, March.
- Harvey, A C, 1976. "Estimating Regression Models with Multiplicative Heteroscedasticity," Econometrica, Econometric Society, vol. 44(3), pages 461-65, May.
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