An economic valuation of access to cultural institutions: museums, theatres, and cinemas
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An economic valuation of access to cultural institutions: museums, theatres, and cinemas Aleksandra Wiśniewska1 · Wiktor Budziński1 · Mikołaj Czajkowski1,2 Received: 21 January 2019 / Accepted: 7 January 2020 © The Author(s) 2020
Abstract Cultural institutions are the main beneficiaries of public funds for culture. However, cultural policies suffer from ‘adhocism’ in the administration of institutions, which are often publicly owned and receive little recognition of the benefits that society gains from their use. The aim of this study is to provide the measurement of the use value of access to cultural institutions. Based on the observed individual attendances and their costs, a two-stage budgeting model is employed to estimate the change in consumer surplus related to the loss of access to cinemas, museums, and theatres in Warsaw, Poland. It is the first non-market valuation of cinemas in the existing literature. The inclusion of institutions’ entire markets helps to overcome the bias caused by the embedding effect and the availability of substitutes, which affects many single-site valuations. The estimated use values are compared with the subsidies received by the three groups of cultural institutions. Results reveal substantial benefits provided by cinemas, although cinemas are nearly excluded from the circulation of public support. The estimated use value is enough to justify subsidies for both highly subsidised sectors of museums and theatres. The estimation of use values serves as a starting point for the evaluation of the use of public resources. Keywords Cultural policy · Funding the arts · Theatre · Museum · Cinema · Nonmarket valuation JEL Classification Z1 · Z11 · Z18 · D61
Electronic supplementary material The online version of this article (https://doi.org/10.1007/s1082 4-020-09375-3) contains supplementary material, which is available to authorized users. * Aleksandra Wiśniewska [email protected] Mikołaj Czajkowski [email protected] 1
Faculty of Economic Sciences, University of Warsaw, Warsaw, Poland
2
Environment Centre, Charles University, Prague, Czech Republic
13
Vol.:(0123456789)
Journal of Cultural Economics
1 Introduction Cultural institutions are the main beneficiaries of public support for culture in many countries, especially in Europe. They are also responsible for the provision of cultural accessibility for society as a whole, which is one of the main goals for cultural policies (Hausner et al. 2013). Cost–benefit analysis has become a standard evaluation methodology used in policy-making in OECD countries (OECD 2006), including the USA (US Office of Management and Budget 1992) and the UK, the leader for evidence-based cultural policies in Europe (O’Brien 2010; HM Treasury 2018) Knowledge about people’s preferences helps to decide where to invest resources to achieve the best value. According to the rule of consumer sovereignty, the costs of governmental expenditures are justifiable if they do not exceed the benefits gained as a result of these expenditures. Acces
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