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Generalised Cost Functions for Producers of Performing Arts – Allocative Inefficiencies and Scale Economies in Theatres

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  • Mervi Taalas

Abstract

This paper examines the structure of the production of cultural services by using a generalised cost function and a panel data set of theatres. The main points of interest are: first, whether the production of theatrical performances is allocatively efficient, second, whether underlying production technology exhibits homotheticity with respect to output, and third, whether there exist economic gains from large scale production. The results of the analysis suggest that inputs are not combined in optimal proportions in light of prevailing market prices, that relative shares of input utilisation vary when output expands, and that there are scale economies in the production of theatrical performances. Copyright Kluwer Academic Publishers 1997

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  • Mervi Taalas, 1997. "Generalised Cost Functions for Producers of Performing Arts – Allocative Inefficiencies and Scale Economies in Theatres," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 21(4), pages 335-353, December.
    • Handle: RePEc:kap:jculte:v:21:y:1997:i:4:p:335-353
    DOI: 10.1023/A:1007488907323
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    1. Víctor Fernández-Blanco & Ana Rodríguez-Álvarez & Aleksandra Wiśniewska, 2019. "Measuring technical efficiency and marginal costs in the performing arts: the case of the municipal theatres of Warsaw," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 43(1), pages 97-119, March.
    2. Victor Fernandez-Blanco & Ana Rodriguez-Alvarez, 2015. "Measuring allocative efficiency in cultural economics: The case of Fundacion Princesa de Asturias," ACEI Working Paper Series AWP-09-2015, Association for Cultural Economics International, revised Oct 2015.
    3. Marta Zieba, 2011. "An Analysis of Technical Efficiency and Efficiency Factors for Austrian and Swiss Non-Profit Theatres," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 147(II), pages 233-274, June.
    4. Soukopová Jana & Nemec Juraj & Matějová Lenka & Struk Michal, 2014. "Municipality Size and Local Public Services: Do Economies of Scale Exist ?," NISPAcee Journal of Public Administration and Policy, Sciendo, vol. 7(2), pages 151-171, December.
    5. Anne-Kathrin Last & Heike Wetzel, 2010. "The efficiency of German public theaters: a stochastic frontier analysis approach," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 34(2), pages 89-110, May.
    6. Castiglione, Concetta & Infante, Davide & Zieba, Marta, 2023. "Public support for performing arts. Efficiency and productivity gains in eleven European countries," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    7. Daniel Urrutiaguer, 2011. "Theatre," Chapters, in: Ruth Towse (ed.), A Handbook of Cultural Economics, Second Edition, chapter 59, Edward Elgar Publishing.
    8. Anne-Kathrin Last & Heike Wetzel, 2011. "Baumol’s cost disease, efficiency, and productivity in the performing arts: an analysis of german public theaters," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 35(3), pages 185-201, August.
    9. Víctor Fernández-Blanco & Ana Rodríguez-Álvarez, 2018. "Measuring allocative efficiency in Cultural Economics: the case of “Fundación Princesa de Asturias” (The Princess of Asturias Foundation)," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 42(1), pages 91-110, February.
    10. Marc Bourreau & Michel Gensollen & François Moreau & Patrick Waelbroeck, 2013. "“Selling less of more?” The impact of digitization on record companies," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 37(3), pages 327-346, August.
    11. Víctor Fernández-Blanco & Luis César Herrero & Juan Prieto-Rodríguez, 2013. "Performance of cultural heritage institutions," Chapters, in: Ilde Rizzo & Anna Mignosa (ed.), Handbook on the Economics of Cultural Heritage, chapter 24, pages i-i, Edward Elgar Publishing.
    12. Francisco Marco-Serrano, 2006. "Monitoring managerial efficiency in the performing arts: A regional theatres network perspective," Annals of Operations Research, Springer, vol. 145(1), pages 167-181, July.
    13. Dapeng Liu & Pascal Courty, 2022. "Some economics of movie exhibition: increasing returns and Imax revenue premium," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 46(4), pages 597-634, December.
    14. Castiglione, Concetta & Infante, Davide & Zieba, Marta, 2024. "Is it worth subsidising the cultural sector? New insights from Italian theatre companies," Journal of Policy Modeling, Elsevier, vol. 46(1), pages 20-38.
    15. Maria Jose Del Barrio-Tellado & Luis Cesar Herrero-Prieto, 2018. "Supporting the Dance Sector. Does Efficiency Clash with Success When Programming?," ACEI Working Paper Series AWP-03-2018, Association for Cultural Economics International, revised Jul 2018.
    16. Concetta Castiglione & Davide Infante & Marta Zieba, 2018. "Technical efficiency in the Italian performing arts companies," Small Business Economics, Springer, vol. 51(3), pages 609-638, October.
    17. María José Barrio-Tellado & Luis César Herrero-Prieto, 2019. "Modelling museum efficiency in producing inter-reliant outputs," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 43(3), pages 485-512, September.

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