Akademik Veri Yönetim Sistemi
Finans Politik ve Ekonomik Yorumlar Dergisi, sa.665, ss.9-30, 2023 (Hakemli Dergi)
This paper empirically examines the determinants of theatre demand function. The panel data model is
established and the data set is limited to 19 NUTS-2 regions. Fixed-effects, random effects models, and
an instrumental variable estimator (IV) are employed in this paper to investigate the determinants of
demand, with a focus on estimating elasticities. The study also aims to determine whether attendance
for theatre in Turkey is consistent with the addiction hypothesis as in Becker et al. (1994). Besides,
financial aid's effects on theatre demand in private theaters are examined. Estimation results suggest
that theatre for Turkish attendees is an addictive good since past demand increases current consumption.
The findings show that the price elasticity is elastic, with an estimated price elasticity of -1.18 for IV
with fixed-effect estimation. Income elasticity lies between 0.44 and 0.90 due to the demand for theatre
not being an inferior good. Castiglione and Infante (2016) also find that income elasticity is positive
with a magnitude that varies between 0.71 and 0.49.