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The efficiency of museums: a stochastic frontier production function approach

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  • Paul Bishop
  • Steven Brand
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    Abstract

    This article examines the technical efficiency of museums based upon data derived from a questionnaire survey of South West England. A stochastic frontier production function is estimated with output measured in terms of visitor numbers. The Cobb-Douglas function is shown to be the best representation of the production function. Average levels of efficiency are estimated to be fairly low at 45.5% with wide variations across museums. The results indicate that high levels of public funding and voluntary activity have a significantly negative impact on technical efficiency. It is argued that further research is needed to develop more sophisticated measures of the output of cultural industries and understand the economic importance of volunteers.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000158064
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 35 (2003)
    Issue (Month): 17 ()
    Pages: 1853-1858

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    Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1853-1858

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    1. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-48, September.
    2. Kalirajan, K P & Shand, R T, 1999. " Frontier Production Functions and Technical Efficiency Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 13(2), pages 149-72, April.
    3. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
    4. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
    5. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    6. Pitt, Mark M. & Lee, Lung-Fei, 1981. "The measurement and sources of technical inefficiency in the Indonesian weaving industry," Journal of Development Economics, Elsevier, vol. 9(1), pages 43-64, August.
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    Cited by:
    1. Kevin Duncan & Peter Philips & Mark Prus, 2006. "Prevailing wage legislation and public school construction efficiency: a stochastic frontier approach," Construction Management and Economics, Taylor & Francis Journals, vol. 24(6), pages 625-634.
    2. Geys, Benny & Konrad, Kai A., 2010. "Federalism and optimal allocation across levels of governance," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2010-09, Social Science Research Center Berlin (WZB).
    3. Herrera, Santiago & Pang, Gaobo, 2005. "Efficiency of public spending in developing countries : an efficiency frontier approach," Policy Research Working Paper Series 3645, The World Bank.
    4. David T. Yi, 2010. "Determinants of fundraising efficiency of nonprofit organizations: evidence from US public charitable organizations," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(7), pages 465-475.
    5. Santiago Herrera & Gaobo Pang, 2006. "How Efficient is Public Spending in Education?," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE.
    6. Marc Bourreau & Michel Gensollen & François Moreau & Patrick Waelbroeck, 2013. "“Selling less of more?” The impact of digitization on record companies," Journal of Cultural Economics, Springer, vol. 37(3), pages 327-346, August.
    7. Seongho Song & David Yi, 2011. "The fundraising efficiency in U.S. non-profit art organizations: an application of a Bayesian estimation approach using the stochastic frontier production model," Journal of Productivity Analysis, Springer, vol. 35(2), pages 171-180, April.
    8. Anne-Kathrin Last & Heike Wetzel, 2010. "The efficiency of German public theaters: a stochastic frontier analysis approach," Journal of Cultural Economics, Springer, vol. 34(2), pages 89-110, May.
    9. Kuo-Liang Matt Chang & Todd A. Lone, 2009. "The Efficiency of Labor Input in the Tree Nut Growers Industry: A Stochastic Frontier Production Approach Study in Butte County, California," SDSU Working Papers in Progress 42009, South Dakota State University, Department of Economics.
    10. Martin Falk, 2009. "Are multi-resort ski conglomerates more efficient?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(8), pages 529-538.
    11. David Throsby, 2006. "An Artistic Production Function: Theory and an Application to Australian Visual Artists," Journal of Cultural Economics, Springer, vol. 30(1), pages 1-14, March.
    12. Lim, Seong-Rin & Schoenung, Julie M., 2011. "Measurement and analysis of product energy efficiency to assist energy star criteria development: An example for desktop computers," Energy Policy, Elsevier, vol. 39(12), pages 8003-8010.
    13. Luis César Herrero-Prieto, 2013. "Is Museum Performance Affected By Location And Institution Type? Measuring Cultural Institution Efficiency Through Non-Parametric Techniques," The Institute for International Integration Studies Discussion Paper Series iiisdp425, IIIS.

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