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Local government allocation of cultural services

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  • Lars Håkonsen

    ()
    (Telemark Research Institute and Telemark College, Norway)

  • Knut Løyland

    ()
    (Telemark Research Institute, Norway)

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    Abstract

    In the present paper we analyse the allocation process of cultural services in Norwegian municipalities. The cultural sector on this administrative level is decomposed into the following eight subcategories: children and youth activities, libraries, cinemas, museums, arts dissemination, sports, cultural schools, and other cultural services. By means of budget shares for these eight cultural services and a residual sector consisting of all other municipal services, we estimate a system of demand relations which are interdependently linked to each other by a budget restriction. Our analyses are based on data from 406 out of 429 Norwegian municipalities during the period 2002 to 2010. In the empirical analyses we mainly focus on the effects of income variation for the cultural services. We estimate effects of free income, matching grants to each sector, and user fees and other sector-specific income for each sector. We also estimate crowding-out effects for the cultural sectors of demographic variables indicating higher demand for services like education, child care, and health services. Our results confirm previous results. There are interesting differences within the group of cultural services, and these are partly related to different national standardization and regulation among the cultural services. In the concluding section we discuss some cultural policy implications of the results obtained.

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    Bibliographic Info

    Paper provided by the Association for Cultural Economics International in its series ACEI Working Paper Series with number AWP-06-2013.

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    Length: 25 pages
    Date of creation: Oct 2013
    Date of revision: Oct 2013
    Handle: RePEc:cue:wpaper:awp-06-2013

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    Web page: http://www.culturaleconomics.org/
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    Keywords: Allocation of cultural services; Local government budget; Demand system;

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    1. Werck, Kristien & Heyndels, Bruno & Geys, Benny, 2007. "The impact of central places on spatial spending patterns: evidence from Flemish local government cultural expenditures," Discussion Papers, Research Unit: Market Processes and Governance SP II 2007-10, Social Science Research Center Berlin (WZB).
    2. Lenka Šťastná, 2009. "Spatial Interdependence of Local Public Expenditures: Selected Evidence from the Czech Republic," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 3(1), pages 007-025, March.
    3. Bernardino Benito & Francisco Bastida & Cristina Vicente, 2013. "Municipal elections and cultural expenditure," Journal of Cultural Economics, Springer, vol. 37(1), pages 3-32, February.
    4. Niklas Potrafke, 2010. "Ideology and cultural policy," TWI Research Paper Series 49, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
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    6. Michael Getzner, 2002. "Determinants of Public Cultural Expenditures: An Exploratory Time Series Analysis for Austria," Journal of Cultural Economics, Springer, vol. 26(4), pages 287-306, November.
    7. Schulze, Gunther G & Ursprung, Heinrich W, 2000. " La donna e mobile--Or Is She? Voter Preferences and Public Support for the Performing Arts," Public Choice, Springer, vol. 102(1-2), pages 131-49, January.
    8. Hammond, Christopher J., 1999. "The technology of library service provision: a cost function analysis of public library systems in the United Kingdom," Information Economics and Policy, Elsevier, vol. 11(3), pages 271-295, September.
    9. Vidar Ringstad & Knut Løyland, 2011. "Performing Arts and Cinema Demand: Some Evidence of Linder’s Disease," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 57(4), pages 255-284.
    10. Ehrenberg, Ronald G, 1973. "The Demand for State and Local Government Employees," American Economic Review, American Economic Association, vol. 63(3), pages 366-79, June.
    11. Michael Getzner, 2004. "Exploring Voter Preferences in Cultural Policy: A Case Study for Austria," Empirica, Springer, vol. 31(1), pages 27-42, March.
    12. Aaberge, Rolf & Langorgen, Audun, 2003. " Fiscal and Spending Behavior of Local Governments: Identification of Price Effects When Prices Are Not Observed," Public Choice, Springer, vol. 117(1-2), pages 125-61, October.
    13. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-21, May.
    14. Domenico Depalo & Silvia Fedeli, 2011. "Heterogeneity in the Cultural Expenditures of Municipalities Evidence from Italian Data (1998-2006)," Working Papers 139, University of Rome La Sapienza, Department of Public Economics.
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