Politico-economic interactions of German public performing arts institutions |
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| Authors: | Susanne Krebs Werner W Pommerehne |
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| Institution: | (1) Institute of Public Finance, University of Saarland, Germany;(2) University of Zurich, Switzerland |
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| Abstract: | Our paper analyzes the conduct of German public performing arts institutions in terms of  non-market decision making or public choice. Apart from consumers of performing arts managers of performing arts institutions and public donors are main agents. A manager of a performing arts institution will not assume that the number of visitors is independent of his institution's programme or the ticket prices. By the same reasoning he will regard the amount of public subsidies not as exogenous, but dependent on his own policy. If future grants depend on present and past success (however defined), this will feed back into managerial decisions, along with expectations about demand. Data for the Federal Republic of Germany serve to empirically support the theoretical argument. |
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| Keywords: | Performing arts cultural policy nonprofit |
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