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Politico-economic interactions of German public performing arts institutions

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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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Authors and Affiliations

  1. Institute of Public Finance, University of Saarland, Germany

    Susanne Krebs & Werner W. Pommerehne

  2. University of Zurich, Switzerland

    Werner W. Pommerehne

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  1. Susanne Krebs
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  2. Werner W. Pommerehne
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Krebs, S., Pommerehne, W.W. Politico-economic interactions of German public performing arts institutions. J Cult Econ 19, 17–32 (1995). https://doi.org/10.1007/BF01074430

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