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Analysis of the consumption of artistic-cultural goods and services in Brazil

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Abstract

This work aims to evaluate the determinants of the consumption of artistic-cultural goods and services in Brazil, conceiving this consumption as an activity with positive effects on the consumer and on the society as a whole. Using the human capital approach, we estimate a model in which the expenditures on artistic-cultural goods and services depend on socio-economic, educational and socio-demographic characteristics of the head of the household, and on variables that indicate the location of the household. The results indicate that artistic-cultural expenditures are strongly determined by income and by the education of the consumer. Furthermore, the expenditure differs regionally, which may occur due to supply variations or historic-cultural distinctions.

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Notes

  1. A formal treatment of “rational addiction” can be found in Becker and Murphy (1988).

  2. Another term found in the literature for describing the effect of past consumption on present consumption is “learning by consuming”. According to this approach, the individual does not know its taste, and can only find it out through recurring consumption experiences. Each new experience brings about an increase or decrease in taste.

  3. In the case of museums and theatre, the consumption depends on the leisure time. Thus, the conventional income-effect can be divided in pure income effect and a leisure-price substitution effect (see Zieba 2009).

  4. We define cultural equipments as the places devoted to the involvement of the public with cultural-artistic activities, such as theaters, music halls, libraries, museums, art galleries, cultural centers, etc.

  5. The choice of working with households instead of the unities of consumption (main unity of investigation of POF) was the belief that some practices of cultural-artistic consumption, especially those which take place inside the household, involve all the residents, and not only the unity of consumption the individual belongs to.

  6. Also in this case, we decided to use aggregated expenditures, as opposed to expenditure on groups of artistic-cultural goods and services (e.g. performing arts, visual arts, etc.). We recognize that the decision of the consumer on how much to spend on cinema movies may depend on other factors than the decision on how much to spend on an opera performance or on a CD-record. Income and socio-demographic characteristics of the households may have different effects on different categories of cultural goods. However, the model could only be estimated in aggregate terms, due to the small amount of expenditures, as we will show later.

  7. The ICV is a price index which allows for comparisons of the cost of living among metropolitan regions in Brazil. It has been calculated between 1981 and 1999, using data from the Family Budget Survey (POF). See Azzoni et al. (2003) for details.

  8. The municipal data was aggregated for the metropolitan regions, through a weighted average of the population of the municipalities. We applied the Principal Components Analysis to the variables, and the eigenvalues of the main component were used as weights for building the index.

  9. We did not include the number of public libraries as a variable, despite its suitability to the concept of “cultural equipment” adopted. This information was omitted due to the significant number of errors of measure in this variable, a fact checked along the work and proved by experts of the reality of the cities.

  10. Several studies on demand use the AIDS method proposed by Deaton and Muellbauer (1980). In this case, the variable to be explained is the share of the expenditure. Since in Brazil this share is quite low (see Table 2), we opted for the CLAD method with all the restrictions it imposes.

  11. In the sample analyzed in this work, only 39.3% of the households interviewed declared non-negative expenditures on art and culture.

  12. For more, see Cameron and Trivedi (2005).

  13. For more, see Cameron and Trivedi (2005).

  14. The estimation of quantile regressions provides a better characterization of the data under analysis, since it allows exploring the form of the distribution of the dependent variable conditional to the explanatory variables. For the estimation of income and expenditure determinants, the quantile regression is the best option because it gets hold of the differences in the determinants according to the quantiles, which is not feasible under the OLS estimation. For more, see Koenker and Basset (1978) and Powell (1986).

  15. The classification of the areas as urban or rural followed the definitions of POF 2002–2003.

  16. The tests were calculated from generalized residuals, as suggested by Newey (1985) and Pagan and Vella (1989).

  17. The same result is found by Ringstad and Løyland (2006) and Werck and Heyndels (2007), who analyze demand for books and theatre, respectively.

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Authors and Affiliations

  1. Faculdade de Ciências Econômicas, UFMG, Antônio Carlos Av., 6627, Room 2063, Belo Horizonte, MG, CEP 31270-901, Brazil

    Sibelle Cornélio Diniz

  2. Faculdade de Ciências Econômicas, UFMG, Antônio Carlos Av., 6627, Room 3040, Belo Horizonte, MG, CEP 31270-901, Brazil

    Ana Flávia Machado

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  1. Sibelle Cornélio Diniz
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  2. Ana Flávia Machado
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Correspondence to Ana Flávia Machado.

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Diniz, S.C., Machado, A.F. Analysis of the consumption of artistic-cultural goods and services in Brazil. J Cult Econ 35, 1–18 (2011). https://doi.org/10.1007/s10824-010-9129-8

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