Abstract
The econometric testing of hypotheses regarding the performing and the creative arts is only just beginning. Therefore it is encouraging to note the generally favorable results reported by Withers (1979) in applying the basic Bergstrom and Goodman (BG) (1973) median voter model to state and local arts support in Australia. Using a combined time series of cross-sectional data for Australian states from 1961-62 to 1974-75, Withers was able to identify median income, an estimated tax share variable, federal outlays, and population density as important determinants of variations in Australian state and local arts expenditures. [1] This comment is directed to the application of BG's "crowding test" to determine the degree of publicness exhibited by creative and performing arts activities. It will be argued that this is not an appropriate test of the public goods nature of such arts activities, and that the speculation regarding private vs. public motives for government arts support is thereby misleading. According to the Bergstrom/Goodman analysis, individuals possess utility functions of the form
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