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Performing Arts and Cinema Demand: Some Evidence of Linder’s Disease

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  • Vidar Ringstad
  • Knut Løyland

Abstract

This study presents some results for performing arts demand in Norway, obtained by means of a complete demand system with performing arts (dance, theatre and concert performances) and cinema as two of several cultural / media goods. The calculations are carried out on the basis of consumer survey data for more than 21,600 households from the period 1986 –2002. The results provide a fairly firm basis for concluding that the demand for performing arts in Norway is income elastic while cinema is income inelastic. However, since both are time-intensive in consumption, they are subject to Linder´s disease which is due to a shadow value of leisure increasing with income. This implies a negative bias in the income elasticity as estimated by us. Our calculations suggest that the bias has become bigger in the period analyzed, i.e. that Linder’s disease has become more serious for both performing arts and cinema over time. The results for other cultural / media goods support this finding. The results do also indicate that the demand for both the performing arts and cinema is price inelastic, and that they generally are substitutes to each other as well as to other cultural / media goods. One notable exception is performing arts and audio-visual media which, according to our findings, seem to be complements suggesting that decreases in the prices of AV media stimulate the demand for performing arts.

Suggested Citation

  • 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.
  • Handle: RePEc:aeq:aeqaeq:v57_y2011_i4_q4_p255-284
    DOI: 10.3790/aeq.57.4.255
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    Citations

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    Cited by:

    1. Onyeneke , Robert Ugochukwu & Emenekwe, Chukwuemeka Chinonso & Amadi, Mark Umunna & Munonye, Jane Onuabuchi & Njoku, Chukwudi Loveday & Izuogu, Chibuzo Uzoma, 2020. "Demand Analysis of Rice in Nigeria: Application of Quadratic Almost Ideal Demand System Model," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 10(01), January.
    2. Victoria Ateca-Amestoy & Javier Gardeazabal & Arantza Ugidos, 2020. "On the response of household expenditure on cinema and performing arts to changes in indirect taxation: a natural experiment in Spain," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(2), pages 213-253, June.
    3. Kirstin Hallmann & Cristina Muñiz Artime & Christoph Breuer & Sören Dallmeyer & Magnus Metz, 2017. "Leisure participation: modelling the decision to engage in sports and culture," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 41(4), pages 467-487, November.
    4. Lars Håkonsen & Knut Løyland, 2016. "Local government allocation of cultural services," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 40(4), pages 487-528, November.
    5. Eric Kolhede & J. Tomas Gomez-Arias & Anna Maximova, 2023. "Price elasticity in the performing arts: a segmentation approach," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(3), pages 523-550, September.
    6. Robert Ugochukwu Onyeneke & Chukwuemeka Chinonso Emenekwe & Mark Umunna Amadi & Jane Onuabuchi Munonye & Chukwudi Loveday Njoku & Chibuzo Uzoma Izuogua, 2020. "Demand analysis of rice in Nigeria: application of quadratic almost ideal demand system model," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 10(1), pages 364-378, June.
    7. Javier García-Enríquez & Cruz A. Echevarría, 2018. "Demand for culture in Spain and the 2012 VAT rise," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 42(3), pages 469-506, August.
    8. Javier Gardeazabal & Eduardo Polo-Muro, 2022. "Cultural expenditure of those who enter (or exit) unemployment," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 46(4), pages 571-596, December.

    More about this item

    Keywords

    performing arts demand; cinema demand; income elasticities; price elasticities; Lindner’s disease;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • Z1 - Other Special Topics - - Cultural Economics

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