Author: Cwi, David and Lyall, Katharine C.

Publication Year: 1976

Media Type: Report

Summary:

The impact of eight local arts and cultural institutions on the local economy in 1976 are estimated.

Abstract:

The impact of eight local arts and cultural institutions on the local economy in 1976 are estimated.

• Spending by the eight institutions: $5,344,754.
• Salaries: $4 million.
• Total audience spending: $4,515,993.
• Secondary business effects:
       1) Business volume: $18,499,4547.
       2) Personal income: $9,676,284.
• Full-time jobs: 1,175.
• Local government revenues: $1,578,545.

The economic impact model uses 30 equations to determine a variety of direct and secondary effects on business, government, and individuals. It was developed to meet several objectives:

1. utilize data generally available from the internal records of arts institutions and from local, state or federal documents (as applied to Baltimore, the model also required audience and employee surveys);
2. be used an understood by non-economists;
3. assess economic effects with as much accuracy as available data allows; and
4. identify negative as well as positive effects.

Section I briefly describes the general structure of the 30 equations comprising the model, reviews the ways in which this report differs from other economic impact studies, and cites important caveats regarding the use and abuse of economic impact studies. Section II provides an overview of the Baltimore economy and its arts community. Section III summarizes results of the quantitative calculations for Baltimore and discusses the role of the arts in economic development and executive recruitment. Section IV provides concluding policy observations. Finally, Section V presents a detailed User Manual explaining the model and its application. The several appendices are important to an understanding of the assumptions and methods of the Baltimore case study and for the application of the model in other locations. (Introduction, p. ii).

CONTENTS
Structure of the model, its use and abuse.
The Baltimore economy and its arts community, an overview.
Summary of institution-related economic effects on the Baltimore metropolitan area.
Direct impact of the eight arts institutions on the business sector of the Baltimore SMSA.
Spending by the eight institutions.
Employee residence and spending patterns.
Audience residence and expenditures.
Spending by out-of-region audiences.
Spending by guest artists.
Secondary and negative impacts on the business sector.
Negative effects on business volume.
Summary of business effects.
Impacts on local government.
Impacts on individuals.
The arts and economic development.
Industrial location.
Executive recruitment.
Concluding policy observations.
User manual: assumptions and other underlying considerations.
Direct impacts on the local economy.
Secondary impacts.
Impacts on government.
Costs to local government.
Impacts on individuals

Appendices:
     A. Guide to model and data sources.
     B. Multipliers and secondary spending effects.
     C. The employee survey.
     D. The audience survey.
     E. Total full-time employees and full-time equivalents.
     F. Adaptations of the model for multi-institutions and multi-jurisdictions.

Arts & Intersections:

Categories: Economic Impact