This article is concerned with to what extent may subsidies to artistic activities be justified by standard economic cost-benefit reasoning. The author concludes that the cultivation of taste and standard cost-benefit reasoning jointly support the conjecture that subsidies could be required to sustain efficient market equilibria, despite globally increasing marginal cost.

This article is concerned with to what extent may subsidies to artistic activities be justified by standard economic cost-benefit reasoning. The author concludes that the cultivation of taste and standard cost-benefit reasoning jointly support the conjecture that subsidies could be required to sustain efficient market equilibria, despite globally increasing marginal cost.