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Understanding Production in the Performing Arts: A Production Function for German Public Theatres

Author

Listed:
  • Marta Zieba

    (Department of Economics, Trinity College Dublin)

  • Carol Newman

    (Department of Economics, Trinity College Dublin)

Abstract

The production structure for the performing arts is complicated by a number of factors making it difficult to estimate production technologies using a theoretical framework built for standard applications. However, understanding the nature of production and the way in which decisions are made by performing arts firms is particularly important given that many performing arts organisations are funded by government. Public funding of performing arts organisations is justified where socially desirable objectives are fulfilled. The public good component of output makes an important dimension of firms' production decisions unobservable while the principal-agent problem reduces the incentive for firms to behave as cost minimisers. Both may result in an observed production structure which is uneconomic. In this paper we re-visit these issues using a new and extensive dataset for German public theatre. We aim to explore the extent to which the standard laws of production that apply in other sectors of the economy hold for performing arts institutions.

Suggested Citation

  • Marta Zieba & Carol Newman, 2007. "Understanding Production in the Performing Arts: A Production Function for German Public Theatres," Trinity Economics Papers tep0707, Trinity College Dublin, Department of Economics.
    • Handle: RePEc:tcd:tcduee:tep0707
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    File URL: http://www.tcd.ie/Economics/TEP/2007/TEP0707.pdf
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    Citations

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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. Victor Fernandez-Blanco & Ana Rodriguez-Alvarez, 2015. "Measuring allocative efficiency in cultural economics: The case of Fundacion Princesa de Asturias," ACEI Working Paper Series AWP-09-2015, Association for Cultural Economics International, revised Oct 2015.
    3. Marta Zieba, 2011. "An Analysis of Technical Efficiency and Efficiency Factors for Austrian and Swiss Non-Profit Theatres," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 147(II), pages 233-274, June.
    4. Castiglione, Concetta & Infante, Davide & Zieba, Marta, 2023. "Public support for performing arts. Efficiency and productivity gains in eleven European countries," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    5. 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.
    6. 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.

    More about this item

    Keywords

    Production technology; Performing Arts; Nonprofit; Germany;
    All these keywords.

    JEL classification:

    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets

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