2017 Volume 40 Issue 2 Pages 39-44
Using a panel dataset of 161 municipalities across the nation, this paper examines the effect of municipal governance structure of arts and cultural administration on local public cultural expenditures. By estimating the demand function within a median voter theory, we found that expenditure on arts events and cultural facilities are price-inelastic. The characteristic of normal goods was only acknowledged with expenditure on arts event. We also found that transferring the authority of arts and cultural administration from the municipal education committee to the mayor's administration induces an increase in expenditure of arts events, but not in expenditures of cultural facilities. Spending on cultural facilities tends to be increased when both the municipal education committee and the mayor's administration are in charge of arts and cultural administration.
