This study presents some results for performing arts demand in
Norway, obtained by means of a complete demand system with performing
arts (dance, theatre and concert performances) and cinema as two of
several cultural/media goods. The calculations are carried out on the
basis of consumer survey data for more than 21,600 households from the
period 1986–2002. The results provide a fairly firm basis for concluding
that the demand for performing arts in Norway is income elastic while
cinema is income inelastic. However, since both are time-intensive in
consumption, they are subject to Linder's disease which is due to a
shadow value of leisure increasing with income. This implies a negative
bias in the income elasticity as estimated by us. Our calculations
suggest that the bias has become bigger in the period analyzed, i.e.,
that Linder's disease has become more serious for both performing arts
and cinema over time. The results for other cultural/media goods support
this finding. The results do also indicate that the demand for both the
performing arts and cinema is price inelastic, and that they generally
are substitutes to each other as well as to other cultural/media goods.
One notable exception is performing arts and audio-visual media which,
according to our findings, seem to be complements suggesting that
decreases in the prices of AV media stimulate the demand for performing
arts.
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http://ejournals.duncker-humblot.de/doi/abs/10.3790/aeq.57.4.255