Author: Canada Council, Research and Evaluation Section

Publication Year: 1981

Media Type: Report

Summary:

There are two definitions of economic impact. The first is a narrow, conventionalist definition concerning the contribution of the arts to the level of economic activity in a community, region or nation. According to this definition the objective of an economic impact study is to demonstrate the dollar and cents contribution of the arts.

Abstract:

There are two definitions of economic impact. The first is a narrow, conventionalist definition concerning the contribution of the arts to the level of economic activity in a community, region or nation. According to this definition the objective of an economic impact study is to demonstrate the dollar and cents contribution of the arts. The second is a broader institutionalist definition concerning the contribution of the arts to overall social development and welfare. According to this second definition the objective of an economic impact study is to demonstrate the value contribution of the arts to society as a whole. To highlight the inherent limitations of conventionalist economic impact studies (the only type of study undertaken to date) only the conventionalist definition is considered in this research note.

CONTENTS
1. What is economic impact?

2. What are the inherent limitations? 

(a) The primary contribution of the arts. 
(b) The Opportunity cost of the arts. 
(c) The appropriate multiplier. 
(d) The cost effectiveness of economic impact studies.

3. What is a short-hand technique?

4. What facts are required?

5. What multipliers are required? 

(a) The Ancillary spectator expenditure multiplier (ASEM). 
(b) The local multiplier (LM). 
(c) The National Multiplier (NM).

6. What is the formula?

7. What are the examples? 

Example 1. Rough estimate of the economic impact of the Toronto 
                  Performing Arts on the local and national economies. 
Example 2. Rough estimate of the economic impact of the Ontario 
                  Performing Arts on the National Economy. 
Example 3. Rough estimate of the economic impact of the Canadian 
                  Performing Arts on the National Economy.

Arts & Intersections:

Categories: Economic Impact