Journal of Cultural Economics 26: 87–113, 2002. © 2002 Kluwer Academic Publishers. Printed in the Netherlands. 87 Valuing the Arts: A Contingent Valuation Approach (original) (raw)
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Valuing the Arts: A Contingent Valuation Approach
Journal of Cultural Economics, 2002
Government funding of the arts has received considerable attention in the United States in recent years. Efforts to cut funding to the National Endowment for the Arts and declining budgets for state arts agencies have raised questions about how much individuals value the arts. This paper applies the contingent valuation method to assess this value, using surveys of random households and of arts patrons. Our analysis estimated a mean willingness to pay (WTP) among all Kentucky households from 6to6 to6to27, depending on the estimation technique used and on whether the scenario discussed is to increase arts performances by 25 per cent, or to avoid a 25per cent or 50 per cent decrease in the number of performances. Among arts patron households, the mean WTP ranges from 61to61 to 61to132.Consumer demand for arts performances in large part follows a predictable pattern. The likelihood of respondents agreeing to make the donation that is requested rises as the size of the donation decreases. The likelihood is higher to avoid a 50 per cent decline in performances than to avoid a 25 percent decline in performances. The mean WTP rises with income, and arts patron households have a much higher WTP than all households. WTP rises with on-site use factors such as frequency of attendance. The WTP also rises for arts patrons households with off-site use such as watching arts events on television or reading about the arts in newspapers and magazines.
Are you willing to pay more for the arts?
Journal of Economic and Financial Sciences
This study determines festival attendees’ Willingness To Pay to support an increase, or prevent a decline, in arts performances and exhibitions. It uses the contingent valuation method to produce a profile of attendees, showing how much, if anything, they are willing to pay per month over and above their current taxes, and their reasons for being willing or unwilling to pay extra. Apart from Snowball (2005), no studies to date have examined Willingness To Pay to support the arts in a developing country like South Africa. This study of the Aardklop festival shows how Willingness To Pay for the arts appears to have changed in South Africa over the past decade and it appears that arts patrons are less willing to pay than a decade ago. It suggests strategies for sustaining the arts in South Africa and will help events managers to identify the attendees who are willing to pay more.
Resident Valuation of Kentucky's Extension Fine Arts Program
Journal of extension, 2014
Since 2005, the Kentucky Cooperative Extension Service has supported agents and programming exclusively dedicated to the development and promotion of the fine arts. This article presents an estimation of the perceived value of the Kentucky Extension Fine Arts (EFA) Program by county residents. While controlling for several factors, we find that residents were more likely to support a tax increase to enhance their county's EFA Program if residents were aware that their county employed an EFA agent and/or participated in EFA programming. We hope this finding encourages other state Extension programs to consider EFA programs. currently co-sponsoring an annual music festival that celebrates a local blues guitarist.
Determining the value of cultural goods: How much (or how little) does contingent valuation tell us?
Journal of Cultural Economics, 2003
Contingent valuation methods (CVM) are now well established as a means of measuring the nonmarket demand for cultural goods and services. When combined with valuations provided through market processes (where relevant), an overall assessment of the economic value of cultural commodities can be obtained. Within a neoclassical framework, such assessments are thought to provide a complete picture of the value of cultural goods. But are there aspects of the value of cultural goods which are not fully captured, or not captured at all, within such a model? This paper argues that CVM provides an incomplete view of the nonmarket value of cultural goods, and that alternative measures need to be developed to provide a fuller account.
Contingent valuation methodology (CVM) has been increasingly applied to cultural resources. CVM employs survey methods to gather stated preference information, which can be used to estimate economic values of various cultural resources and projects. Although popular in other fields, the application of CVM in the cultural arena is relatively recent. This article summarizes this growing body of empirical literature and its range of findings. A meta-analysis gives a statistical view of the "state of the art" of the literature. This preliminary analysis sheds light on the consistency and validity of the use of this method in cultural applications.
Written for Association for Cultural Economics International Conference 2010
2010
Some economists believe that not enough culture is consumed due to incompletelyformed preferences for art, classic examples are Scitovsky, The Joyless Economy: An Inquiry into human satisfaction and consumer dissatisfaction (1976) and Throsby and Withers, The Economics of the performing arts (1979). Museums now offer educational programs in addition to exhibits. Educational as opposed to exhibition programming might be considered an intra-generational trade-off for taste formation. Our research examines this trade-off in the USA’s top museums 1 , with the result being a measure of intra-generational equity. Museums gain considerable tax advantages as are exempt from federal (and thus local) income taxes and local real estate taxes. Thus our study offers insight into to what degree these not-for-profit organizations can be viewed as ‘educational’ and perhaps more justifiably as fulfilling a ‘public purpose’. Grampp in Pricing the priceless: Art, artists and economics (1989) writes th...
Cultural value and economic value in arts and culture1
2020
Can economic value express the ‘total’ value of cultural goods or does cultural value somehow elude economic valuation methods? Some prominent cultural economists – such as Throsby, Hutter and Frey – have questioned whether cultural value can be ‘translated’ into economic values using the methods of contingent valuation. The claim is that cultural value cannot be disaggregated into individual utilities, and by extension, broken down into individual preferences and choices. Rather, it captures something ‘irreducibly social’ that cannot be accounted for using economic valuation techniques. We are left with value pluralism where cultural and economic values are not mutually exchangeable. As the current chapter suggests, this might have consequences for how we think about the value of arts and culture and how we communicate this value to policy makers and the public at large.
Contingent valuation and cultural resources: a meta-analytic review of the literature
Journal of Cultural Economics, 2003
Contingent valuation methodology (CVM) has been increasingly applied to cultural resources. CVM employs survey methods to gather stated preference information, which can be used to estimate economic values of various cultural resources and projects. Although popular in other fields, the application of CVM in the cultural arena is relatively recent. This article summarizes this growing body of empirical literature and its range of findings. A meta-analysis gives a statistical view of the "state of the art" of the literature. This preliminary analysis sheds light on the consistency and validity of the use of this method in cultural applications.
The Economics of Art and Culture
2001
Part II: The microeconomics of demand and supply 4 Consumer demand: An introduction 5 The characteristics of arts demand and their policy implications 6 Production in the performing arts 7 Firms and markets in the performing arts 8 Productivity lag and the financial problem of the arts Part III: The fine arts and museums 9 The market in works of art 10 The economics of art museums Part IV: Public policy toward the arts 11 Should the government subsidize the arts? 12 Public and/or private support for the arts in the United States, Canada, and Western Europe v 13 Direct public support for the arts in the United States Part V: Art, economy, and society 14 The arts as a profession: Education, training, and employment 15 The role of the arts in a local economy 16 The mass media, public broadcasting, and the cultivation of taste 17 Conclusion: Innovation, arts education, and the future of art and culture in the United States Index vi Contents
Determinants of Prices for the Performing Arts
Journal of Promotion Management, 2019
The performing arts constitute a significant share of demand in the public's arts consumption spending. Despite the growing volume of research in the marketing of the arts, research specifically focusing on the promotion and pricing of the performing arts is still in the development phase. In this study, we examine the impact of locational variables related to live music performances on ticket prices. Specifically, this research focuses on the relationships between ticket prices for classical concert seats and locational variables such as the distance of the seat from the front of the stage, its angle with respect to the center-line of the performance hall and the size of the town population where the concert is hosted are examined. Utilizing data from a leading intermediary of performing arts tickets the above relationships are empirically examined. The paper concludes with a discussion of pricing implications for promoters of the performing arts.