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Organisational Structure and Managerial Efficiency: A quasi-experimental analysis of German public theatres

Author

Listed:
  • Marta Zieba

    (Department of Economics, University of Limerick)

  • Carol Newman

    (Department of Economics, Trinity College Dublin)

Abstract

This paper examines the production technology and managerial efficiency of the performing arts sector in Germany using data on 79 theatres over a 32-year period. We examine how different organisational structures affect the efficiency of public theatres and find that theatres organised under public law are more efficient than theatres organised under private law. Using a difference-in-differences approach we examine the impact on efficiency of the exogenous demand shock experienced by theatres located near the East German border after reunification in 1990. We show that theatres organised under private law react positively to this competition shock as measured by their technical efficiency scores confirming that they respond better to market forces than theatres organised under public law.

Suggested Citation

  • Marta Zieba & Carol Newman, 2012. "Organisational Structure and Managerial Efficiency: A quasi-experimental analysis of German public theatres," Working Papers WP032012, University of Limerick, Department of Economics, revised Oct 2012.
  • Handle: RePEc:lim:wpaper:032012
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    References listed on IDEAS

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    Cited by:

    1. Víctor Fernández-Blanco & Ana Rodríguez-Álvarez & Aleksandra Wiśniewska, 2019. "Measuring technical efficiency and marginal costs in the performing arts: the case of the municipal theatres of Warsaw," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 43(1), pages 97-119, March.
    2. Marta Zieba, 2013. "Is theatre efficiency affected by the legal form type? A case study of German public theatres," Working Papers WP032013, University of Limerick, Department of Economics, revised Jul 2013.
    3. Concetta Castiglione & Davide Infante & Marta Zieba, 2018. "Technical efficiency in the Italian performing arts companies," Small Business Economics, Springer, vol. 51(3), pages 609-638, October.

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    Keywords

    organisational structure; managerial efficiency; natural experiment; public theatres; Germany;
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