Course: Econ 295 Economics of the Arts Instructor: Dr. Prahlad Kasturi
Professor & Chair
Section Numbers: 01 Office Room: Davis Hall 147
Prerequisites: None Phone: (540) 831-5884 Office
Instruction Room: WH205 (540) 831-5100 Lv. Message
Session Hours: 1100-1215 TR (540) 763-9160 Residence
Source Text: The Economics of Art Office Hours: 1300-1500 TR
and Culture (consultation
by James Heilburn & by appointment)
Charles M. Gray
Cambridge University
Press. 1993.
Course Outline:
This course examines the economics of the fine arts and performing
arts in the United States. The course provides a systematic analysis of the
arts sector, investigates arts' historical growth, examines consumption and
production of the live performing arts and the fine arts, the functioning of
arts markets, the financial problems of performing arts companies and museums
and the key role of public policy. The course will also afford perspectives on
the future of art and culture in the United States due to social, economic,
political and technological changes.
Course Objective:
The course objective is to investigate problems of development,
resource allocation and management in the art sector of the U.S. economy.
Grade Assignment:
Student will be evaluated on the basis of in-class assignments,
examinations and a term paper which will be a group project. Commitment to the
class in terms of attendance and participation will be noted. The following
weights attend to assignments, examinations and term paper.
Term Paper = 100 points
2 examinations at 100 points each = 200 points
In-Class Assignments = 100 points
Grade assignment on the basis of Total = 400 points
Examination Dates:
February 18, 1997 First Midterm Examination
April 30, 1997 Final Examination
(0800-1000 Hrs)
Term Paper Requirement:
A concise and well researched term paper is part of the course requirement.
The typed paper, about 6-8 pages in length is to be submitted on April 10, 1996.
The term paper should have an abstract and other sections providing
background information, problem identification, methodology, and data sources
utilized, results, discussion, solution and conclusion. The term paper will be
evaluated on style of presentation, analytical rigor, soundness of methodology,
validity of conclusion, clarity and language.
The term paper which will be a group project will focus on some economic
aspect of art or public policy issue related to the art sector economy. Suitable
topics will be identified by the instructor. A term paper outline should be
submitted to the instructor by Jan 21, 1996 with a note on data sources to be
utilized. A rough draft should be provided to the instructor by Mar 27, 1996.
Students are encouraged to avail themselves of the instructor's guidance in
preparing the paper. Students not adhering to the above deadlines will not be
permitted a chance to complete the work at a future date.
Detailed Syllabus:
Part I: The arts sector in the United States: size, growth and audiences
Topic 1. An overview of the arts sector
Topic 2. Growth of the arts sector
Topic 3. Audiences for the arts
Part II: The microeconomics of demand and supply
Topic 4. Consumer demand: an introduction
Topic 5. The characteristics of arts demand and their policy implication
Topic 6. Production in the performing arts
Topic 7. Firms and markets in the performing arts
Topic 8. Productivity lag and the financial problem of the arts
Part III: The fine arts and museums
Topic 9. The market in works of art
Topic 10.The economics of art museums
Part IV: Public policy toward the arts
Topic 11. Should the government subsidize the arts?
Topic 12. Public and/or private support for the arts
Topic 13. Direct public support for the arts
Part V: Art, economy and society
Topic 14. The arts as a profession: education, training and employment
Topic 15. The role of arts in a local economy
Topic 16. The mass media, public broadcasting and the cultivation of taste
Topic 17. Innovation, arts education and the future of art and culture in
the United States.
Topic Assignment for Class
Econ 295 Session Dates Topics Assigned
Jan. 07, 09 Introduction & 1
14, 16 2 & 3
21, 23 4
28, 30 5
Feb. 04, 06 6
11, 13 7 & 8
18, 20 Midterm & 9
25, 27 10
Mar. 04, 06 11
11, 13 Spring Break
18, 20 12
25, 27 13
Apr. 01, 03 14
08, 10 15
15, 17 16
22, 24 17
(Coverage is tentative and subject to change.)
Additional References:
1. Blaug, Mark (editor). The Economics of the Arts, Westview Press 1976.
2. Myerscough, John. The Economic Importance of the Arts in Britain, Policy
Studies Institute PSI, 1988.
3. Jeffri, Joan. ArtsMoney, Neal Schuman Publishers Inc. 1983
4. Wyszomirski, M.J. and P. Clubb. The Cost of Culture: Patterns and Prospects
of Private Arts Patronage, American Council for the Arts ACA 1989.
5. Plattner, Stuart. High Art Down Home: An Economic Ethnography of a Local
Art Market, The University of Chicago Press, 1996.
6. Economic Impact of the Arts: A Sourcebook, National Conference of State
Legislatures, 1987.
7. Alexander, Victoria D. Museums and Money: The Impact of Funding on
Exhibitions, Scholarship, and Management, Indiana University Press, 1996.