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Do Artists Suffer From A Cost-Disease?

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  • Tyler Cowen
  • Robin Grier

Abstract

We consider the Baumol-Bowen cost-disease argument from the perspective of an artist's occupational choice. Both theory and evidence suggest that the incentives to create art do not diminish and probably increase in a growing market economy. First, countervailing factors may check or limit the operation of the cost-disease. Second, artists can increase their productivity by generating new ideas. New ideas provide the base for all productivity improvements, whether in the arts or in industry. Third, the arts are not necessarily labor-intensive, as cost-disease proponents allege. Fourth, the available statistical evidence implies that economic growth has favorable effects on artistic production.

Suggested Citation

  • Tyler Cowen & Robin Grier, 1996. "Do Artists Suffer From A Cost-Disease?," Rationality and Society, , vol. 8(1), pages 5-24, February.
    • Handle: RePEc:sae:ratsoc:v:8:y:1996:i:1:p:5-24
    DOI: 10.1177/104346396008001001
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    References listed on IDEAS

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    Cited by:

    1. Bruce A. Seaman, 2013. "The role of the private sector in cultural heritage," Chapters, in: Ilde Rizzo & Anna Mignosa (ed.), Handbook on the Economics of Cultural Heritage, chapter 5, pages i-i, Edward Elgar Publishing.
    2. Seaman, Bruce A., 2009. "Cultural Economics: The State of the Art and Perspectives/Economía de la cultura: estado del arte y perspectivas," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 27, pages 7-32, Abril.

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