State arts agencies now provide more than half of public-sector funding for arts and culture. This paper explores the factors that drive the state government to decide to fund the arts. We find that high state government revenues, a sophisticated government and strong economic growth are all associated with a relatively high level of arts funding. There remain idiosyncratic state specific factors which also drive arts funding. One implication is that a strong and active local government with a growing economy and a thriving arts community can all co-exist.
This paper evaluates the contribution of patent-related events to changes in stock prices, proposing that economics has traditionally failed to find much effect for two reasons which we identify and correct. First, patents vary widely in quality so we use quantile analysis and alternative measures of patent quality to identify effects. Second, we permit the possibility that information leaks out into investor sentiment during the long and uncertain time until patent grant, so evaluate the stock price effect at four different dates in the life of each patent. As a case study to test this approach, track all patents over a 27-year period for Apple Inc., permitting design patents to have different effects that traditional utility-model patents, and isolate the effect that Steve Jobs’s name on a patent has at each stage of a patent’s life.