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.