Author: Gapinski, James H.

Publication Year: 1979

Media Type: Book

Summary:

Paper presented at First International Conference on Arts and Economics, sponsored by the Association for Cultural Economics, held in Edinburgh, Scotland, August 8-10, 1979. Comment by John R. Hildebrand appears on p. 270. Comment by Bevars D. Mabry appears on p. 270-271.

Abstract:

Paper presented at First International Conference on Arts and Economics, sponsored by the Association for Cultural Economics, held in Edinburgh, Scotland, August 8-10, 1979. Comment by John R. Hildebrand appears on p. 270. Comment by Bevars D. Mabry appears on p. 270-271.

A good or service does not result from purely chance happenings; rather it eventuates from both the systematic ordering of events and the proper balance of contributing elements. Given this regimentation, it seems likely that there should exist some formula to summarize the relationship between the quantities produced and the quantities of all ingredients needed for that production. Such a formula does exist; it is called a production function.

Production functions have been applied to a wide spectrum of manufacturing industries ranging from food to apparel and from glass to primary metals. Recently they found their way into the health industry to address the production of physician's and dentists' services (Reinhardt 1972; Scheffler and Kushman 1977). Their excursion into the arts generally and the performing arts specifically has been less extensive; more accurately, it has awaited a beginning. This circumstance is unfortunate because the knowledge to be gained would supply answers to a list of basic, important questions. For the nonprofit performing arts that list would include these questions:

Do support personnel such as ushers and cashiers contribute appreciably to productive activity? Reason suggests that their contribution should rank below that of artists, but it remains silent about whether their role is substantial or negligible.

Can support personnel be absorbed by the arts without the need of additional capital - buildings and equipment? An affirmative response would lead to a corollary question: how easily can they be absorbed?

Are input levels for the nonprofit performing arts determined according to the rules of profit maximization? A distinctive feature of nonprofit arts organizations is their heavy reliance on patronage to meet expenses. Such organizations therefore may be less responsive to market forces in their input decisions than firms striving to maximize profit would be. An example of the latter might be commercial performing arts.

Are production structures identical across art forms? Is the relationship between inputs and output the same for, say, theater and opera, or does it differ?

These and other questions can be addressed with the aid of production functions. The answers obtained should prove useful not only to the arts community but also to policymakers at all tiers of government. (p. 261-262).

CONTENTS
The production function and questions, questions.
The typical arts organization.
Table 1 - Output and input levels for the typical nonprofit arts organization. 
              A closeup of production structures.
Table 2 - Selective production characteristics of the typical nonprofit arts organization.
Questions answered, tentatively.
Looking ahead.
Notes.
References [bibliography].

Arts & Intersections:

Categories: Financial Management