Are less government support and more competition a threat to diversity in the supply of arts?

A high per capita GDP is of crucial importance for the arts. The higher the GDP, the higher the demand for arts and cultural products. Similarly, the higher the GDP, the higher the government revenues and the greater the scope for funding. Therefore, it is equally important to look at what brings about a higher per capita GDP. We test the following hypothesis: the more competitive

the economy, the higher GDP. It appears that competition indeed is good for the arts. By stimulating the competitiveness of the Dutch economy as a whole, the NMa is simultaneously stimulating the arts. When talking about diversity in the supply of arts, competition is – however – not the most important factor. Other market failures play a more significant role in reducing artistic diversity. Still, we conclude that less government support is a threat to diversity in the supply of arts, only insofar as this support is meant to correct market failures.