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2013 | 3 | 1 | 28-48
Article title

Studying “Sponsored Goods” in Cultural Sector. Econometric Model of Baumol’s Disease

Title variants
Languages of publication
EN
Abstracts
EN
The paper presents the second part of the study of “sponsored goods” in the cultural sector. It describes economic activities of theaters, concert organizations and museums in three dimensional index space coordinate axes being the lag of labor productivity, faster growth of salaries and tickets prices in relation to the corresponding macroeconomic indices. The methodology of constructing such indexes and statistical data used for this purpose are described in the first article published under the title “Symptoms and consequences of Baumol’s cost disease in cultural sector: an econometric study of “sponsored goods”. The aim of the present article is to construct and analyse econometric model of cost disease based on statistical data on activities of Russian theaters, concert organizations and museums for the period of 1994-2010. The regression analysis based on structural model that reflects theoretically predictable links was chosen as a method of study. Such links include first, influence on cost growth of lag of labour productivity in arts organisations and parallel trend in salaries. Second, dependence of increase of income of such organizations on dynamics of labour productivity and ticket prices, third, balanced equation - product of equilibrium conditions for sponsored goods that describes the interrelation between costs of production, prices and budget subsidies. The calculations made it possible to construct basic and modified econometric models that establish statistical correlations between income deficit and three regressors, namely indexes of labour productivity, salaries and ticket prices. As a result of this model the article presents projections of regression relation of income deficit on «expenditures plane», «income plane» and «economic results plane». Theequations derived allow to conclude that there is a statistically significant income deficit negative elasticity by labour productivity index, positive elasticity by salaries index and ticket price index, as well as rising dynamics of Russian performing arts organization income deficit and its compensation in the nearest future.
Publisher
Year
Volume
3
Issue
1
Pages
28-48
Physical description
Dates
published
2013-07-01
online
2013-11-16
Contributors
  • Institute of Economics, Russian Academy of Science, Russia, arubin@aha.ru
References
  • Baumol W.J., Bowen W.G. Performing Arts: The Economic Dilemma. The Twentieth CenturyFund.New York, 1966.
  • Bhargava A., Franzini L., Narendranathan W. Serial Correlation and the Fixed Effects Model: The Review of Economic Studies, Vol. 49, No. 4 (Oct., 1982), pp. 533-549
  • Dickenson V. (1992), ‘Museum Visitors Surveys: An Overview, 1930-1990’, in R. Towse and A Khakee (eds), Cultural Economics, Berlin/Heidelberg: Springer Verlag, pp.141-50.
  • Felton M.V. (1992), On the Assumed Inelasticity of Demand for the Performing Arts, Journal of Cultural Economics, 16, 1-12.[Crossref]
  • Gapinski J.H. (1986), ‘The Lively Arts as Substitutes for the Lively Arts’, American Economic Review, 75, 20-25.
  • Ginsburgh A., Throsby D (eds.) Handbook on the Economics of Art and Culture, 2006, North- Holland.
  • Goldberger A. S. (1964). Econometric theory. Wiley, New York Heilbrun J. (2003). «Baumol’s cost disease», in A handbook of cultural economics. Edward Elgar, pp. 91-101.
  • Heilbrun, James and Charles M. Gray (2001), The Economics of Art and Culture, second edition, New York: Cambridge University Press.
  • Kostina, E. P. Creative Work in Performing Arts. The Evolution of Socio-economic Relationships (1960s-1990s). - Moscow, 1999
  • Kruskal W. Relative Importance by Averaging Over Orderings // The American Statistician, Vol. 41, N.1 (Feb., 1987), pp.6-10.
  • Kudrin, A. It Is a Revolution in Funding Public Institutions //Izvestiya, No. 93 (26172), 1 June 2002
  • Moore T.G. (1996), ‘The Demand for Broadway Theater Tickets’, Review of Economics and Statis tics, 48, 79-87.
  • Rubinstein, A. Ya.On the Theory of 'Patronized Goods' Markets. Article 2. Sociodynamic descriptionof Patronized Goods Markets // Obshchestvennye Nauki i Sovremennost', 2009, No. 2.
  • The Ford Foundation (1974), The Finances of the Performing Arts, Volume I, New York: The Ford Foundation.
  • Towse R. (ed.) (1997a), Baumol's Cost Disease: The Arts and Other Victims, Cheltenham, UK and Lyme, US: Edward Elgar.
  • Towse R. (ed.) (1997b), Cultural Economics: The Arts, the Heritage and the Media Industries, Vol. II, Cheltenham, UK and Lyme, US: Edward Elgar.
Document Type
Publication order reference
Identifiers
YADDA identifier
bwmeta1.element.doi-10_2478_v10212-011-0029-x
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