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Is It Worth Subsidising Regional Repertory Theatre?

Author

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  • Forrest, David
  • Grime, Keith
  • Woods, Robert

Abstract

Subsidies to the performing arts are usually justified by reference to externality and public goods arguments that are hard to quantify. We suggest that subsidies to theatres may be appropriate because of their inability to engage in spatial price discrimination to capture consumer surplus. For one major theatre, we use audience data and the Clawson-Knetsch travel cost method to assess the extent of consumer surplus and find that it exceeds the level of subsidy received from public sources. On the basis of this example, current subsidy levels are justifiable even without recourse to traditional externality/public goods arguments. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Forrest, David & Grime, Keith & Woods, Robert, 2000. "Is It Worth Subsidising Regional Repertory Theatre?," Oxford Economic Papers, Oxford University Press, vol. 52(2), pages 381-397, April.
    • Handle: RePEc:oup:oxecpp:v:52:y:2000:i:2:p:381-97
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    Citations

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    Cited by:

    1. van der Ploeg, Frederick, 2006. "The Making of Cultural Policy: A European Perspective," Handbook of the Economics of Art and Culture, in: V.A. Ginsburgh & D. Throsby (ed.), Handbook of the Economics of Art and Culture, edition 1, volume 1, chapter 34, pages 1183-1221, Elsevier.
    2. Alina Ozhegova & Evgeniy M. Ozhegov, 2018. "Heterogeneity in demand for performances and seats in the theatre," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(3), pages 131-145, June.
    3. Alan Collins & Chris Hand & Andrew Ryder, 2005. "The Lure of the Multiplex? The Interplay of Time, Distance, and Cinema Attendance," Environment and Planning A, , vol. 37(3), pages 483-501, March.
    4. S Cameron, 2006. "Determinants of the Demand for Live Entertainments: Some Survey-based Evidence," Economic Issues Journal Articles, Economic Issues, vol. 11(2), pages 51-64, September.
    5. Czajkowski, Mikołaj & Vossler, Christian A. & Budziński, Wiktor & Wiśniewska, Aleksandra & Zawojska, Ewa, 2017. "Addressing empirical challenges related to the incentive compatibility of stated preferences methods," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 47-63.
    6. Eva Vicente & Pablo de Frutos, 2011. "Application of the travel cost method to estimate the economic value of cultural goods: Blockbuster art exhibitions," Hacienda Pública Española / Review of Public Economics, IEF, vol. 196(1), pages 37-63, january.
    7. Aleksandra Wiśniewska & Mikołaj Czajkowski, 2015. "Utilizing the Discrete Choice Experiment Approach for Designing a Socially Efficient Cultural Policy: The case of municipal theaters in Warsaw," Working Papers 2015-36, Faculty of Economic Sciences, University of Warsaw.
    8. Michael Getzner, 2020. "Spatially Disaggregated Cultural Consumption: Empirical Evidence of Cultural Sustainability from Austria," Sustainability, MDPI, vol. 12(23), pages 1-19, December.
    9. 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.
    10. Robert Young & Anita Fernandez Young & Jennifer Parkin & Abigail Diamond, 2010. "Assessing the Economic Impact of Culture in English Market Towns: A Causal Chain Approach," Tourism Economics, , vol. 16(4), pages 925-951, December.
    11. Marta Zieba, 2009. "Full-income and price elasticities of demand for German public theatre," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 33(2), pages 85-108, May.
    12. Aleksandra Wiśniewska & Wiktor Budziński & Mikołaj Czajkowski, 2018. "Publicly funded cultural institutions – a comparative economic valuation study," Working Papers 2018-22, Faculty of Economic Sciences, University of Warsaw.
    13. David Forrest & Robert Simmons & Patrick Feehan, 2002. "A Spatial Cross–Sectional Analysis of Elasticity of Demand for Soccer," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(3), pages 336-356, August.
    14. Mirko Moro & Karen Mayor & Seán Lyons & Richard S J Tol, 2013. "Does the Housing Market Reflect Cultural Heritage? A Case Study of Greater Dublin," Environment and Planning A, , vol. 45(12), pages 2884-2903, December.
    15. Patrick Feehan & David Forrest, 2007. "Distribution of UK National Lottery grants across local authority areas," Applied Economics Letters, Taylor & Francis Journals, vol. 14(5), pages 361-365.
    16. Tuan, Hun Tran & Navrud,Stale, 2012. "Capturing the Benefits of Preserving World Heritage Cultural Heritage Sites," EBLA Working Papers 201202, University of Turin.
    17. John C. Whitehead & Douglas Simpson Noonan & Elizabeth Marquardt, 2014. "Criterion and predictive validity of revealed and stated preference data: the case of “Mountain Home Music†concert demand," Economics and Business Letters, Oviedo University Press, vol. 3(2), pages 87-95.
    18. K. Willis & J. Snowball & C. Wymer & José Grisolía, 2012. "A count data travel cost model of theatre demand using aggregate theatre booking data," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 36(2), pages 91-112, May.
    19. Aleksandra Wiśniewska & Ewa Zawojska & Andrea Baldin & Joanna Rachubik, 2023. "Reliability of international benefit transfer in cultural economics: Non-market valuation of theater in Denmark and Poland," Working Papers 2023-19, Faculty of Economic Sciences, University of Warsaw.
    20. Jani-Petri Laamanen, 2013. "Estimating demand for opera using sales system data: the case of Finnish National Opera," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 37(4), pages 417-432, November.
    21. Aleksandra Wiśniewska & Wiktor Budziński & Mikołaj Czajkowski, 2020. "An economic valuation of access to cultural institutions: museums, theatres, and cinemas," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(4), pages 563-587, December.

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