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THE SOCIAL BENEFITS OF URBAN CULTURAL AMENITIES *
Author(s) -
Clark David E.,
Kahn James R.
Publication year - 1988
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1988.tb01088.x
Subject(s) - amenity , valuation (finance) , willingness to pay , economics , contingent valuation , wage , wage rate , public good , hedonic pricing , microeconomics , public economics , labour economics , econometrics , finance
. This paper uses a two‐stage hedonic wage approach to derive the benefits from improvement of five cultural amenities. It is argued that the hedonic approach permits valuation of both private and local public aspects of cultural goods since access to the amenity is an essential input in the production of the final service flow. Empirical estimates of willingness to pay suggest price and income elasticities are approximately unity. Lower‐bound estimates of marginal benefits for a representative city range from $0.85 million for an additional theater to $57.9 million for an additional zoo facility.