How Do State Arts Appropriations Affect State Economic Growth?
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.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Jeffrey M Wooldridge, 2010.
"Econometric Analysis of Cross Section and Panel Data,"
MIT Press Books,
The MIT Press,
edition 2, volume 1, number 0262232588, December.
- Jeffrey M. Wooldridge, 2001. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232197, December.
- 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.
- Dokko, Jane K., 2009. "Does the NEA Crowd Out Private Charitable Contributions to the Arts?," National Tax Journal, National Tax Association, vol. 62(1), pages 57-75, March.
- 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.
- Sam Youl Lee & Richard Florida & Zoltan Acs, 2004.
"Creativity and Entrepreneurship: A Regional Analysis of New Firm Formation,"
Taylor & Francis Journals, vol. 38(8), pages 879-891.
- Richard Florida & Zoltan Acs & Sam Youl Lee, 2004. "Creativity and Entrepreneurship: A Regional Analysis of New Firm Formation," Papers on Entrepreneurship, Growth and Public Policy 2004-17, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- 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.
- 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.
When requesting a correction, please mention this item's handle: RePEc:rre:publsh:v:39:y:2009:i:3:p:253-67. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark L. Burkey)
If references are entirely missing, you can add them using this form.