Key findings of cesifo research paper “Music in the Air: Estimating the Social Return to Cultural Amenities” include:
- Culture is expensive but worth it: Expenditure on cultural institutions have a positive effect on income in the region
- The ifo researchers understand their results as an argument supporting subsidies for cultural institutions
- According to their research on opera houses it is unclear, however, whether a country as a whole benefits from investment into individual region’s cultural sector
A comment in the SZ hence warns cities and municipalities to cut the culture budgets under the influence of current financial pressure: These cuts may seem quick and easy but could have devastating indirect effects.