Artfilms, Handicrafts and Other Cultural Goods: The Case for Subsidy

Cécile Aubert, Pranab Bardhan and Jeff Dayton-Johnson

Public Economics from University Library of Munich, Germany

Abstract: Though widespread, the practice of public subsidies for cultural activity lacks a rigorous and consistent economic rationale. We analyze a canonical market structure that characterizes much cultural activity: the competition of mass-produced goods with heterogeneous non- standardized goods that are imperfect substitutes. We analyze several types of market failure: uncertainty about preferences (we do not know what we like, and we do not know what we might like in the future); endogeneity of preferences (we like what our neighbors talk about, and we like what we're accustomed to); and externalities associated with production (future production costs are determined by current production). The model provides a basis for cultural subsidies to promote social welfare and economic development.

JEL-codes: H20 H42 L82 Z10 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2004-07-02
Note: 32 pages, Acrobat .pdf
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/pe/papers/0407/0407001.pdf (application/pdf)

Related works:
Working Paper: Artfilms, handicrafts and other cultural goods: the case for subsidy (2007)
Working Paper: Artfilms, Handicrafts and Other Cultural Goods: The Case for Subsidy (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwppe:0407001

Access Statistics for this paper

More papers in Public Economics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).