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Causality and Museum Subsidies

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  • David Maddison

Abstract

Although museums are major recipients of public money, very little is known regarding what factors cause changes in the level of funding given to particular institutions. It is nevertheless regularly asserted by those affected that governments will reduce the level of subsidy going to those museums that raise revenues for themselves, especially if these revenues were raised through charging for admission. This paper explores the causal influences underlying changes in the level of government grants to museums. Statistically analysing data drawn from a panel of UK museums funded by central government, evidence is found that increases in non-grant income do indeed result in a statistically significant reduction in future government subsidies. It is however unclear whether these reductions are sufficient to offset entirely the financial benefits from charging or the pursuit of private benefactors. Despite the government's avowed intention to widen access to museums, changes in visitor numbers do not appear to cause changes in government grants. Copyright Kluwer Academic Publishers 2004

Suggested Citation

  • David Maddison, 2004. "Causality and Museum Subsidies," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 28(2), pages 89-108, May.
  • Handle: RePEc:kap:jculte:v:28:y:2004:i:2:p:89-108 DOI: 10.1023/B:JCEC.0000019515.96628.f5
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    References listed on IDEAS

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    Cited by:

    1. Juan Prieto-Rodríguez & Víctor Fernández-Blanco, 2006. "Optimal pricing and grant policies for museums," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, pages 169-181.
    2. Muzychuk, V. & Khaunina, E., 2015. "Support Mechanisms for Museums in the Economic Crisis (the Example of Major Museums of Europe and Russia)," Journal of the New Economic Association, New Economic Association, vol. 25(1), pages 132-161.
    3. Brida, Juan Gabriel & Monterubbianesi, Pablo Daniel & Zapata Aguirre, Sandra, 2012. "Análisis de los factores que afectan la repetición de la visita a una atracción cultural: una aplicación al museo de Antioquia
      [Analysis of factors affecting repeat visit to a cultural attraction:
      ," MPRA Paper 37622, University Library of Munich, Germany.
    4. JG. Brida & M. Pulina & E. Riaño, 2010. "Visitors' experience in a modern art museum: a structural equation model," Working Paper CRENoS 201026, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    5. Victor Fernández-Blanco & Juan Prieto-Rodríguez, 2011. "Museums," Chapters,in: A Handbook of Cultural Economics, Second Edition, chapter 40 Edward Elgar Publishing.
    6. Elena GORI & Silvia FISSI, 2013. "From Cash to Accrual Accounting: A Model to Evaluate the Performance of Public Museums," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(4), pages 519-541, October.
    7. Bruno S. Frey & Lasse Steiner, 2010. "Pay as you go: a new proposal for museum pricing," IEW - Working Papers 485, Institute for Empirical Research in Economics - University of Zurich.
    8. Silvia Fedeli & Michele Santoni, 2006. "The Government's Choice of Bureaucratic Organisation: An Application to Italian State Museums," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 30(1), pages 41-72, March.
    9. Frey, Bruno S. & Meier, Stephan, 2006. "The Economics of Museums," Handbook of the Economics of Art and Culture, Elsevier.
    10. Drevs, Florian & Tscheulin, Dieter K. & Lindenmeier, Jörg & Renner, Simone, 2014. "Crowding-in or crowding out: An empirical analysis on the effect of subsidies on individual willingness-to-pay for public transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 250-261.

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    Keywords

    causality; crowding out; museums; subsidies;

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