119-05
Universität Siegen
Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht
Volkswirtschaftliche Diskussionsbeiträge
Sao-Wen Cheng
Cultural
Goods Production, Cultural Capital Formation and the Provision of Cultural
Services
Cultural capital
is assumed to benefit all members of society. It is accumulated through
the consumption of cultural goods, cultural services are provided by cultural
services industry; the stock of cultural goods is enlarged by the flow
of new cultural goods created by individuals who are both consumers and
creators of culture and whose utility is positively affected by the cultural
goods they created. In the no-policy market economy, individuals tend
to ignore the positive external effects of their cultural services consumption
and creation of cultural goods on other individuals via augmenting cultural
capital and cultural-goods stock. Consequently, less cultural capital
and cultural-goods stock will be accumulated. The efficient allocation
can be restored by introducing an appropriate subsidy that stimulates
the consumers’ demand for cultural services, and the creation of
new cultural goods, promotes the accumulation of cultural capital and
cultural goods.
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