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Valuing the Arts: A Contingent Valuation Approach

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  • Eric Thompson
  • Mark Berger
  • Glenn Blomquist
  • Steven Allen

Abstract

Government funding of the arts has received considerable attention in the United States in recent years. Efforts to cut funding to the National Endowment for the Arts and declining budgets for state arts agencies have raised questions about how much individuals value the arts. This paper applies the contingent valuation method to assess this value, using surveys of random households and of arts patrons. Our analysis estimated a mean willingness to pay (WTP) among all Kentucky households from $6 to$27, depending on the estimation technique used and on whether the scenario discussed is to increase arts performances by 25 per cent, or to avoid a 25per cent or 50 per cent decrease in the number of performances. Among arts patron households, the mean WTP ranges from $61 to $132.Consumer demand for arts performances in large part follows a predictable pattern. The likelihood of respondents agreeing to make the donation that is requested rises as the size of the donation decreases. The likelihood is higher to avoid a 50 per cent decline in performances than to avoid a 25 percent decline in performances. The mean WTP rises with income, and arts patron households have a much higher WTP than all households. WTP rises with on-site use factors such as frequency of attendance. The WTP also rises for arts patrons households with off-site use such as watching arts events on television or reading about the arts in newspapers and magazines. Copyright Kluwer Academic Publishers 2002

Suggested Citation

  • Eric Thompson & Mark Berger & Glenn Blomquist & Steven Allen, 2002. "Valuing the Arts: A Contingent Valuation Approach," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 26(2), pages 87-113, May.
  • Handle: RePEc:kap:jculte:v:26:y:2002:i:2:p:87-113
    DOI: 10.1023/A:1014426202110
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    References listed on IDEAS

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    Cited by:

    1. Bruno S. Frey, "undated". "What Values Should Count in the Arts? The Tension between Economic Effects and Cultural Value," IEW - Working Papers 253, Institute for Empirical Research in Economics - University of Zurich.
    2. Jaap Boter & Jan Rouwendal & Michel Wedel, 2005. "Employing Travel Time to Compare the Value of Competing Cultural Organizations," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 29(1), pages 19-33, February.
    3. Salvador Saz-Salazar & Ana Navarrete-Tudela & José Ramón Alcalá-Mellado & Daniel Carlos Saz-Salazar, 2019. "On the Use of Life Satisfaction Data for Valuing Cultural Goods: A First Attempt and a Comparison with the Contingent Valuation Method," Journal of Happiness Studies, Springer, vol. 20(1), pages 119-140, January.
    4. Samuel D. Zapata & Carlos E. Carpio, 2014. "The theoretical structure of producer willingness to pay estimates," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 613-623, September.
    5. Bruno S. Frey & Simon Luechinger, 2005. "Measuring terrorism," Chapters, in: Alain Marciano & Jean-Michel Josselin (ed.),Law and the State, chapter 6, Edward Elgar Publishing.
    6. Zapata, Samuel D. & Carpio, Carlos E. & Isengildina-Massa, Olga & Lamie, R. David, 2013. "The Economic Impact of Services Provided by an Electronic Trade Platform: The Case of MarketMaker," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-20.
    7. Thiess Buettner & Eckhard Janeba, 2016. "City competition for the creative class," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 40(4), pages 413-451, November.
    8. Ju-Hee Kim & Ga-Eun Kim & Seung-Hoon Yoo, 2018. "A Valuation of the Restoration of Hwangnyongsa Temple in South Korea," Sustainability, MDPI, Open Access Journal, vol. 10(2), pages 1-1, January.
    9. José Sanz & Luis Herrero & Ana Bedate, 2003. "Contingent Valuation and Semiparametric Methods: A Case Study of the National Museum of Sculpture in Valladolid, Spain," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 27(3), pages 241-257, November.
    10. J. Snowball, 2005. "Art for the Masses? Justification for the Public Support of the Arts in Developing Countries – Two Arts Festivals in South Africa," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 29(2), pages 107-125, May.
    11. Maria Llop & Josep-Maria Arauzo-Carod, 2012. "Economic impact of a new museum on the local economy: “the Gaudí Centre”," Letters in Spatial and Resource Sciences, Springer, vol. 5(1), pages 17-23, March.
    12. Bertacchini Enrico & Santagata Walter & Signorello Giovanni, 2009. "Loving Cultural Heritage. Private individual giving and prosocial behavior," EBLA Working Papers 200904, University of Turin.
    13. Massimo FLORIO & Francesco GIFFONI, 2017. "Willingness-to-Pay for Science as a Public Good: A Contingent Valuation Experiment," Departmental Working Papers 2017-17, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    14. Weiwei Liu & Kevin J. Egan, 2019. "A Semiparametric Smooth Coefficient Estimator for Recreation Demand," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1163-1187, November.
    15. David J. Lewis & Gary L. Hunt & Andrew J. Plantinga, 2003. "Does Public Lands Policy Affect Local Wage Growth?," Growth and Change, Wiley Blackwell, vol. 34(1), pages 64-86, February.
    16. Antoni Seguí Alcaraz, 2012. "Cajas de ahorros: un modelo de compromiso con la sociedad [Savings banks and society: a model of commitment to society]," REVESCO: Revista de estudios cooperativos, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Escuela de Estudios Cooperativos, issue 107, pages 155-185.
    17. Egan, Kevin J. & Corrigan, Jay R. & Dwyer, Daryl F., 2015. "Three reasons to use annual payments in contingent valuation surveys: Convergent validity, discount rates, and mental accounting," Journal of Environmental Economics and Management, Elsevier, vol. 72(C), pages 123-136.
    18. Ana Bedate & Luis Herrero & José Sanz, 2009. "Economic valuation of a contemporary art museum: correction of hypothetical bias using a certainty question," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 33(3), pages 185-199, August.
    19. Boter, Jaap & Rouwendal, Jan & Wedel, Michel, 2004. "Employing Travel Costs to Compare the Use Value of Competing Cultural Organizations," Serie Research Memoranda 0011, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    20. Alejandro Esteller Moré & Jonathan Jorba Giménez & Albert Solé Ollé, 2009. "Las prioridades sociales de gasto en obra social de las cajas de ahorro: estimación a partir de la aplicación de un “juego presupuestario”," Hacienda Pública Española / Review of Public Economics, IEF, vol. 191(4), pages 43-72, December.
    21. Douglas Noonan, 2003. "Contingent Valuation and Cultural Resources: A Meta-Analytic Review of the Literature," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 27(3), pages 159-176, November.
    22. Gelsomina CATALANO & Massimo FLORIO & Francesco GIFFONI, 2016. "Willingness to Pay for Basic Research: A Contingent Valuation Experiment on the Large Hadron Collider," Departmental Working Papers 2016-03, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    23. Marine Le Gall-Ely, 2009. "Définition, mesure et déterminants du consentement à payer du consommateur : synthèse critique et voies de recherche," Post-Print hal-00522826, HAL.
    24. Bart Neuts, 2020. "Mixed pricing strategies in museums: Examining the potential of voluntary contributions for capturing consumer surplus," Tourism Economics, , vol. 26(1), pages 115-136, February.

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