Cultural Economics and the Main Trends of Institutional Reforms

Abstract

The article deals with the institutional economics approach to analyzing the cultural sector of the Russian economy. Some specific characteristics of cultural sphere are described, such as features of cultural products, value of culture and arts, information asymmetry and pricing particularities at the market for cultural products. Research of the cultural sphere under this heading tends to deviate from the conventional economic research. Quality differentiated inputs raise a number of questions about the organization of creative activities. The author concentrates on the origin of non profit firms, applying contract theory arguments. The paper examines the public support of culture through an economists lens and offers typical empirical findings based on that perspective.

Keywords:

Cultural Economics