This article studies the socioeconomics of government public expenditure for the arts and the normative foundations of state intervention in the arts. I pose two interrelated research questions: (a) what is the relationship between the public funding of the arts and their consumption? and (b) what mode of justification and what perception of the place of art in society is reflected in this relationship? Based on the philosophical work of Alan Badiou, I develop a novel conceptual framework to delineate three types of normative justifications for the public funding of arts organizations: romantic, didactic and classical. Using data from the public funding of 92 orchestras, theaters and dance troupes in Israel between 1999 and 2011, I estimate a cross-lagged panel data model to study how arts funding both affects and is affected by the levels of consumption of the organizations’ productions. The results of the study show a complex pattern of different relationships between funding and consumption that accord with the three types of normative justifications for public arts funding.
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