On Public Justification for Public Support of the Arts
GENERAL
Major disagreements characterize the government subsidies to the arts. Advocates for the arts justify subsidies by the inherent value of art etc. Economists insist that the free market failure causes a misallocation of resources. Justifications for support are discussed by most are found lacking analytically or empirically. However, this paper suggests a new twist on the externality argument. The external beneficiary is a person who, for whatever reason, wants others to attend arts events. The point is that if enough people benefit, in the sense that they are willing to pay to see subsidized arts, and if similar individuals can free ride by enjoying others' donations, then none of them has sufficient incentive to give to the arts. It is possible for government, potentially, to make everybody better off by taxing those individuals who do value others' attendance, and then using the funds to subsidize the arts. Includes references.