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Quality, service level, or empire: which is the objective of the nonprofit arts firm?

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Author Info
Arthur Brooks ()
Jan Ondrich
Abstract

In 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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File URL: http://hdl.handle.net/10.1007/s10824-007-9032-0
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Publisher Info
Article provided by Springer in its journal Journal of Cultural Economics.

Volume (Year): 31 (2007)
Issue (Month): 2 (June)
Pages: 129-142
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:jculte:v:31:y:2007:i:2:p:129-142

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

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords: Public radio; Charitable giving; Managerial objectives; Z11; L31;

References listed on IDEAS
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  1. Richard Steinberg, 1986. "The Revealed Objective Functions of Nonprofit Firms," RAND Journal of Economics, The RAND Corporation, vol. 17(4), pages 508-526, Winter. [Downloadable!] (restricted)
  2. Harvey, A C, 1976. "Estimating Regression Models with Multiplicative Heteroscedasticity," Econometrica, Econometric Society, vol. 44(3), pages 461-65, May. [Downloadable!] (restricted)
  3. repec:fth:prinin:357 is not listed on IDEAS
  4. David Card & Alan Krueger, 1996. "Labor Market Effects of School Quality: Theory and Evidence," Working Papers 736, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  5. Henry Hansmann, 1981. "Nonprofit Enterprise in the Performing Arts," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 341-361, Autumn. [Downloadable!] (restricted)
  6. 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. [Downloadable!] (restricted)
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