Economics of Art and Culture

general courses

The aim of the course is to introduce the basic concepts of cultural economics, one of the younger sub-disciplines of economics. The theories and tools that students will become familiar with can be applied in the analysis of cultural phenomena. The presentation of the current state of knowledge will be accompanied by pointing out topics that can be explored within academic and research work at the undergraduate and graduate levels.

The classes are designed for students interested in using economics to study culture and art, as well as for individuals planning to work or already working in the cultural sector. The presented tools and methods of analysis can easily be applied to other areas of the economy at the intersection of the private and public sectors.

Who is responsible for protecting cultural heritage? How do cultural markets operate (or why might they fail)? What is the economic rationale for government intervention in art and culture? Are artists willing to work for free? Does theatre generate profit? What determines attendance in cinemas? – these are the questions that cultural economics aims to answer. The history of this discipline begins in the 1960s. In Poland, broader discussions emerged in 2009 after the Polish Cultural Congress, an event that brought the economics of culture into the public discourse.

The foundational publication for cultural economics, "Performing Arts: The Economic Dilemma" (1966), required authors to spend “months of searching through dusty files in cramped backstage offices, hours spent collecting questionnaires from audiences, interviews with producers, managers and choreographers, and a massive correspondence.” Fifty years later, cultural economics has become an interdisciplinary field of scientific research, where economists can leverage concepts and tools from other disciplines such as applied microeconomics, the public sector economy, and econometrics. With better databases and the rational expectation that their research can influence cultural policy, economists delve into this field.

The course is divided into three blocks:

1. Economic profile of the cultural sector:

- cultural goods and services – the economic perspective;

- scale and scope of the cultural and creative sector in Poland;

- production, costs, and supply of cultural goods;

- artists’ labor market and economics of copyright;

- audience, participation, and demand for cultural goods;

2. The economics of cultural sectors:

- performing arts;

- cultural heritage (protection, museums, institutions);

- creative industries: music, film, broadcasting, and book publishing;

3. Public-good characteristics of cultural goods:

- public sector and its role;

- valuation of cultural goods and services – non-market valuation methods;

- economic evaluation of cultural policy.

Methods:

- reading of academic and industry texts;

- workshops – quantitative analysis of cultural sector data, presentation of selected statistical methods and econometric models used in cultural economics;

- meetings with expert practitioners.

Cultural economics has been gaining a more prominent presence in Poland over the recent years. The willingness of decision-makers, cultural institutions, and creators to embrace economic analyses has facilitated their integration into public discourse, thereby influencing cultural policies. The course aims to empower participants to actively participate in ongoing debates concerning the operation of culture. Furthermore, the program can be customized to align with the specific interests of the participants.

Towse, R., & Hernández, T. N. (Eds.). (2020). Handbook of cultural economics. Edward Elgar Publishing.

Additional literature:

Ginsburgh, V. A., & Throsby, D. (Eds.). (2006). Handbook of the Economics of Art and Culture (Vol. 1). Elsevier.

Ginsburgh, V. A., & Throsby, D. (Eds.). (2014). Handbook of the Economics of Art and Culture (Vol. 2). Elsevier.

Hutter, M. (2015). The rise of the joyful economy: Artistic invention and economic growth from Brunelleschi to Murakami. Routledge.

Hutter, M., & Throsby, D. (Eds.). (2008). Beyond price: Value in culture, economics, and the arts. Cambridge University Press.

Rizzo, I., & Mignosa, A. (Eds.). (2013). Handbook on the economics of cultural heritage. Cheltenham and Northampton: Edward Elgar.

Selected journal publications – e.g., published in the „Journal of Cultural Economics”

Students understand the fundamentals of cultural economics and can adeptly apply the acquired concepts and tools from mandatory courses within the realm of arts and culture. They possess the capacity to comprehend scholarly articles within the field of cultural economics and are competent in conducting basic quantitative analysis for cultural purposes. Additionally, students can articulate their observations in a well-organized manner, employing the language specific to cultural economics.

The basis for the final assessment will be a short semester assignment - a presentation of a selected cultural phenomenon using the tools of cultural economics - along with participation during class activities.