DO ARTISTS SUFFER FROM A COST-DISEASE

We consider the Baumol-Bowen cost-disease argument from the perspectiv e of an artist's occupational choice. Both theory and evidence suggest that the incentives to create art do not diminish and probably increa se in a growing market economy. First, countervailing factors may chec k or limit the operation of the cost-disease. Second, artists can incr ease their productivity by generating new ideas. New ideas provide the base for all productivity improvements, whether in the arts or in ind ustry. Third, the arts are not necessarily labor-intensive, as cost-di sease proponents allege. Fourth, the available statistical evidence im plies that economic growth has favorable effects on artistic productio n.