author={Tyler Cowen and Robin Grier},
  journal={Rationality and Society},
  pages={24 - 5}
We consider the Baumol-Bowen cost-disease argument from the perspective of an artist's occupational choice. Both theory and evidence suggest that the incentives to create art do not diminish and probably increase in a growing market economy. First, countervailing factors may check or limit the operation of the cost-disease. Second, artists can increase their productivity by generating new ideas. New ideas provide the base for all productivity improvements, whether in the arts or in industry… 

Why I do not believe in the cost-disease

William Baumol' s paper "Children of Performing Arts , The Economic Dilemma : The Climbing Costs of Health Care and Education" makes two central claims: first, a cost-disease plagues relatively stagnant activities, such as the performing arts, health care, and education; and second, some of the public policy problems the authors have had in these areas are explained.

An Economic Theory of Avant-Garde and Popular Art, or High and Low Culture

Artists face choices between the pecuniary benefits of selling to the market and the nonpecuniary benefits of creating to please their own tastes. We examine how changes in wages, lump-sum income,

Let’s Forget About the Cost Disease

This article argues that 40 years after Baumol and Bowen laid the foundations for the cost disease theory cultural economists should make a choice. They should either stop using the term cost disease

Performing Arts and Cinema Demand: Some Evidence of Linder's Disease

This study presents some results for performing arts demand in Norway, obtained by means of a complete demand system with performing arts (dance, theatre and concert performances) and cinema as two

A salary bass: a study of bassists’ earnings in the Royal Swedish Opera, 1799–1980

ABSTRACT The number of occupations which have hardly altered at all, thus not suffering from Schumpeterian ‘creative destruction’, is very restricted. However, one such profession is the

From Adele to Zedd: The Consumption of Popular Music in the United State, 2006-2013

The entertainment industry is an impactful part of the U.S. economy. My thesis explores the way Americans consume popular music and how the U.S. economic environment affects the permeability of the

Creative output in a market context

The main contributions of this thesis to existing literature is the introduction of a new methodology for researching the effect of copyright law on creative output using dynamic markets created in a

Public policy and the performing arts : intended and unintended consequences of public subsidies

The aim of my research is to assess intended and unintended consequences of public subsidies to non-profit institutions, particularly focusing on the performing arts. In recent years, one of the main

Cultural Economics: The State of the Art and Perspectives

The intellectual development of cultural economics has exhibited some notable similarities to the challenges faced by researchers pioneering in other areas of economics. While this is not really

Towards more accurate measurement of the value of the arts to society : economic impact and willingness to pay studies at the Standard Bank National Arts Festival

The accurate measurement of the value of the arts to society is becoming increasingly important in developing countries, like South Africa, where the arts must compete with housing, health, education



The Production and Consumption of the Arts: A View of Cultural Economics

BY MOST CRITERIA the arts comprise a significant area of economic activity. In 1990, American consumers spent $5 billion on admissions to theater, opera, galleries, and other nonprofit arts events

Increasing Returns and Long-Run Growth

  • P. Romer
  • Economics
    Journal of Political Economy
  • 1986
This paper presents a fully specified model of long-run growth in which knowledge is assumed to be an input in production that has increasing marginal productivity. It is essentially a competitive

Genius, Creativity, and Leadership: Historiometric Inquiries

Dean Keith Simonton examines uncommon people; those creators and leaders whose impact on their own and later times has been so great that they deserve the label "genius".

Income and Substitution Effects in the Linder Theorem

1. The modified Linder Theorem, 630. — 2. The role of the income effect, 631. —3. Concluding comment, 632.

Heresies About Time: Wasted Time, Double-Duty Time, and Past Time

1. Wasted time among the "harried," 661. — 2. "Double-duty" time and the efficient production of human capital, 662. — 3. Past time and the importance of "sunk costs," 665.