This article will review an extensive bibliography concerning the complete set of arguments justifying the use of public funds to support Arts and Culture. Particular conditions regarding the supply ("the cost disease") and the demand (public goods), the existence of community preferences (merit good), and the contribution to economic activity and employment (Studies of the Economic Impact of Culture) are all taken into consideration. The limitations of each argument are pointed out, as well as those that gain strength based on economic theory.
Cultural economics; Cultural policy; Baumol's cost-disease; Copyright
