Cost-benefit analysis using economic surpluses: A case study of a televised event

Aliza Fleischer*, Daniee Feesenstein

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

27 Scopus citations

Abstract

Economic impact studies based on short-run spending injections and multipliers lack conceptual ties to measures of economic surplus, fail to capture intangible benefits and generally fail to measure costs. In this case study of the Eurovision Song Contest (ESC) held in Israel in 1999, national benefits from the government-financed televising of the ESC are measured as producer surplus (approximated by private sector incremental profits), consumer surplus (measured as the incremental willingness to pay for an event staged at home) and government surplus (linked to national implicit benefits in the form of promotional advertising cost savings). The opportunity costs of diverting resources to this particular televised event are expressly included as an offset to these gross surplus benefits. Despite the conservative approach, the results show moderate social justification for public support of this high profile televised spectacle and suggest that a cost-benefit approach to cultural events can have wider applications.

Original languageAmerican English
Pages (from-to)139-156
Number of pages18
JournalJournal of Cultural Economics
Volume26
Issue number2
DOIs
StatePublished - 2002

Bibliographical note

Funding Information:
Funding for this research was provided by the Israeli Ministry of Tourism. The authors would like to thank the referees for constructive comments on earlier drafts that contributed greatly to the coherence of this work.

Keywords

  • Cost-benefit analysis
  • Economic surplus
  • Eurovision Song Contest
  • Televised events
  • Willingness to pay

Fingerprint

Dive into the research topics of 'Cost-benefit analysis using economic surpluses: A case study of a televised event'. Together they form a unique fingerprint.

Cite this