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How Do State Arts Appropriations Affect State Economic Growth?

Author

Listed:
  • Deskins, John

    (Creighton University)

  • Deskins, Sally

    (Metropolitain College, Omaha)

  • Hill, Brian

    (Salisbury State University)

Abstract

In this study, we examine the effect of public spending for the arts on state economic growth among U.S. states. While there is a large literature on the effects of many elements of public spending on economic growth, this literature has ignored spending for the arts. We extend this literature by conducting a series of regression models using a panel of state-level data for the years 1992 through 2003 to identify the effect of public spending for the arts on state economic growth when such spending is financed through own-source revenues. Results indicate that increasing state arts spending above current levels, financed through own-source revenues, leads to an overall reduction in state economic growth. While this finding does not indicate that arts spending as a whole adversely impacts economic growth, it suggests that state arts spending is slightly above the optimum level, to the extent that the goal of such spending is to maximize economic growth.

Suggested Citation

  • Deskins, John & Deskins, Sally & Hill, Brian, 2009. "How Do State Arts Appropriations Affect State Economic Growth?," The Review of Regional Studies, Southern Regional Science Association, vol. 39(3), pages 253-267.
  • Handle: RePEc:rre:publsh:v:39:y:2009:i:3:p:253-67
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    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/198/153
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    References listed on IDEAS

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    1. Dokko, Jane K., 2009. "Does the NEA Crowd Out Private Charitable Contributions to the Arts?," National Tax Journal, National Tax Association;National Tax Journal, vol. 62(1), pages 57-75, March.
    2. Sam Youl Lee & Richard Florida & Zoltan Acs, 2004. "Creativity and Entrepreneurship: A Regional Analysis of New Firm Formation," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 879-891.
    3. Helms, L Jay, 1985. "The Effect of State and Local Taxes on Economic Growth: A Time Series-Cross Section Approach," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 574-582, November.
    4. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, January.
    5. Lori L. Taylor & Stephen P. A. Brown, 2006. "The Private Sector Impact Of State And Local Government: Has More Become Bad?," Contemporary Economic Policy, Western Economic Association International, vol. 24(4), pages 548-562, October.
    6. Evans, Paul & Karras, Georgios, 1994. "Are Government Activities Productive? Evidence from a Panel of U.S. States," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 1-11, February.
    7. Sarah Skinner, 2006. "Estimating the real growth effects of blockbuster art exhibits: A time series approach," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 30(2), pages 109-125, September.
    8. Ronald C. Fisher, 1997. "Effects of state and local public services on economic development," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 53-82.
    9. Bruno Frey, 1999. "State Support and Creativity in the Arts: Some New Considerations," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 23(1), pages 71-85, March.
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    Cited by:

    1. Zachary Horváth & Brian David Moore & Jonathan C. Rork, 2014. "Does Federal Aid to States Aid the States?," Growth and Change, Wiley Blackwell, vol. 45(2), pages 333-361, June.

    More about this item

    Keywords

    Art;

    JEL classification:

    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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