Abstract
This article provides estimates of price and income elasticities of demand for German public theatre, using a large and reliable data set for 178 theatres over 40 years (1965-2004). It is posited that the consumption of the performing arts is a time-intensive activity for which both a theatre ticket and leisure time are necessary. Thus, the impacts of 'full-income' ('leisure time income' added to disposable income) and the price of leisure time on theatre attendance are examined. The findings indicate that the demand for the performing arts is own-price inelastic. The disposable income elasticity is significant, positive and equals approximately one. In contrast, the full-income elasticity is well above one and greater than usual income elasticity indicating that the performing arts are a luxury good when leisure time income is included in the consumer's budget. The positive full-income effect is, however, offset by the negative price of leisure effect indicating that leisure time is a complement for the performing arts. Additionally, three objective quality characteristics of theatrical productions which can positively influence theatre demand are examined.
Original language | English |
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Pages (from-to) | 85-108 |
Number of pages | 24 |
Journal | Journal of Cultural Economics |
Volume | 33 |
Issue number | 2 |
DOIs | |
Publication status | Published - May 2009 |
Externally published | Yes |
Keywords
- Demand
- Germany
- Leisure time
- Nonprofit
- Performing arts
- Quality