The Economics of Art Museums A National Bureau of Economic Research Conference Report The Economics of Art Museums

Edited and with an Introduction by Martin Feldstein

The University of Chicago Press

Chicago and London MARTIN FELDSTEIN is the George F. Baker Professor of Economics at Harvard University, and is president and chief executive officer of the National Bureau of Economic Research.

The University of Chicago Press, Chicago 60637 The University of Chicago Press, Ltd., London © 1991 by the National Bureau of Economic Research All rights reserved. Published 1991 Printed in the United States of America 00 99 98 97 96 95 94 93 92 5 4 3 2 ISBN (cloth): 0-226-24073-8

Library of Congress Cataloging-in-Publication Data

The Economics of art museums / edited and with an introduction by Mar­ tin Feldstein. p. cm. -(A National Bureau of Economic Research confer- ence report) Includes bibliographical references and index. I. Art museums-Economic aspects-United States. I. Feldstein, Martin S. II. National Bureau of Economic Research. III. Series: Conference report (National Bureau of Economic Research) N510.E27 1991 338.4'770813-dc20 91-27088 CIP

@>The paper used in this publication meets the minimum requirements of the American National Standard for Information Sciences-Permanence of Paper for Printed Library Materials, ANSI Z39.48-1984. National Bureau of Economic Research

Officers

George T. Conklin, Jr., chairman Geoffrey Carliner, executive director Paul W. McCracken, vice chairman Charles A. Walworth, treasurer Martin Feldstein, president and chief Sam Parker, director offinance and executive officer administration

Directors at Large

John H. Biggs Martin Feldstein Robert T. Parry Andrew Brimmer George Hatsopoulos Peter G. Peterson Carl F. Christ Lawrence R. Klein Robert V. Roosa George T. Conklin, Jr. Franklin A. Lindsay Richard N. Rosett Kathleen B. Cooper Paul W. McCracken Bert Seidman Jean A. Crockett Leo Melamed Eli Shapiro George C. Eads Michael H. Moskow Donald S. Wasserman Morton Ehrlich James J. O'Leary

Directors by University Appointment

Jagdish Bhagwati, Columbia James L. Pierce, California. Berkeley William C. Brainard, Yale Andrew Postlewaite, Pennsylvania Glen G. Cain, Wisconsin Nathan Rosenberg, Stanford Franklin Fisher, Massachusetts Institute of Harold T. Shapiro, Princeton Technology Craig Swan, Minnesota Jonathan Hughes, Northwestern Michael Yoshino, Harvard Saul H. Hymans, Michigan Arnold Zellner, Chicago Marjorie B. McElroy, Duke

Directors by Appointment of Other Organizations

Rueben C. Buse, American Agricultural Ben E. Laden, National Association of Economics Association Business Economists Richard A. Easterlin, Economic History Rudolph A. Oswald, American Federation of Association Labor and Congress ofIndustrial Gail Fosler, The Conference Board Organizations A. Ronald Gallant, American Statistical Dean P. Phypers, Committee for Economic Association Development Robert S. Hamada, American Finance Douglas D. Purvis, Canadian Economics Association Association David Kendrick, American Economic Charles A. Walworth, American Institute of Association Certified Public Accountants

Directors Emeriti

Moses Abramovitz Thomas D. Flynn George B. Roberts Emilio G. Collado Gottfried Haberler Willard L. Thorp Frank W. Fetter Geoffrey H. Moore William S. Vickrey

Since this volume is a record of conference proceedings, it has been exempted from the rules governing critical review of manuscripts by the Board of Directors of the National Bureau (res­ olution adopted 8 June 1948, as revised 21 November 1949 and 20 April 1968).