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Private or Public?

  • Merijn Rengers
  • Erik Plug

This paper concerns the consequences of subsidizing art production. Once a government offers grants and subsidies, artists can decide between public and private funding. A joint model of this choice-situation and the related earnings is derived. The model is tested for the case of visual artists in the Netherlands. The analyses show that subsidizing artists enhances a winner-takes-all tendency for the market at large. Financial success on both the private and the public market appears to be not particularly related to human capital, but to personal characteristics, government recognition and (unobserved) talents. Copyright Kluwer Academic Publishers 2001

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File URL: http://hdl.handle.net/10.1023/A:1007670321446
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Article provided by Springer in its journal Journal of Cultural Economics.

Volume (Year): 25 (2001)
Issue (Month): 1 (February)
Pages: 1-20

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Handle: RePEc:kap:jculte:v:25:y:2001:i:1:p:1-20
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100284

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  1. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-58, December.
  2. David Throsby, 1996. "Economic circumstances of the performing artist: Baumol and Bowen thirty years on," Journal of Cultural Economics, Springer, vol. 20(3), pages 225-240, September.
  3. Adler, Moshe, 1985. "Stardom and Talent," American Economic Review, American Economic Association, vol. 75(1), pages 208-12, March.
  4. Singer, Leslie P, 1981. "Supply Decisions of Professional Artists," American Economic Review, American Economic Association, vol. 71(2), pages 341-46, May.
  5. 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.
  6. Filer, Randall K, 1986. "The "Starving Artist"-Myth or Reality? Earnings of Artists in the United States," Journal of Political Economy, University of Chicago Press, vol. 94(1), pages 56-75, February.
  7. repec:cup:cbooks:9780521586399 is not listed on IDEAS
  8. MacDonald, Glenn M, 1988. "The Economics of Rising Stars," American Economic Review, American Economic Association, vol. 78(1), pages 155-66, March.
  9. Victor Ginsburgh & Pierre-Michel Menger, 1996. "Economics of the arts: selected essays," ULB Institutional Repository 2013/1655, ULB -- Universite Libre de Bruxelles.
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