Government intervention in the creative economy : a focus on the performing arts

Abstract

This study sets out to assess the justification or otherwise of government intervention in the creative economy, particularly the performing arts market, and to rank the different policies and measures available for government intervention. The study employs a Multi-Criteria Analysis whereby each policy is given a score according to a particular criterion and the sum of all scores is used to rank the options at hand. Sensitivity analysis is conducted to gauge the difference in policies according to criteria and their weights. The study finds that the highest ranking policies are VAT exemption on Training and other tax initiatives, along with Malta Arts Fund and Malta Arts Scholarships. The study concludes by presenting a combination of policies so that the shortcomings of one policy are balanced with the benefits of another. Fiscal and educational interventions can work in tandem for the Performing Arts to prosper.