An Exploration of the Beckerian Theory of Time Costs: Symphony Concert Demand

In: The American journal of economics and sociology, Volume 58, Issue 4, p. 887-899

Abstract

Abstract The passage of time has long been known to have economic effects The most important effect in the arts has heretofore been the so‐called "cost disease" whereby productivity in manufacturing and even service activities outstrips those in cultural pursuits notably the performance arts Naturally, a positive income effect on demand would tend to mitigate this supply effect. This paper posits yet another side to wage and income increases ‐ the Beckerian notion that such increases also raise the opportunity cost of time, potentially adding to the effect of the "cost disease" The implication of this effect are discussed in this paper and a preliminary statistical test for significance is developed and conducted. The results support the economic significance suggested for the suggested for the aggregate demand for symphony concerts