Economic Impact of the Arts in Iowa by John W. Fuller, February 1985

The purpose of this study was to measure the economic impact of the arts in the state of Iowa. Economic impact of the arts was defined as the total effect of arts expenditures on the state's economy . The effect of arts expenditures includes the initial impact of dollars spent for wages and salaries, purchases of goods and services, and other purposes of both arts organizations and individual artists. These initial expenditures then give rise to secondary rounds of spending in many sectors of a state's economy. The government sector may gain f rom these expenditures in terms of increased tax receipts, while firms and individuals are likely to benefit from added economic activity and increased employment opportunities. Expenditures on the arts can have further economic impacts, through adding to the quality of life in a state or urban area and thereby attracting (or retaining) businesses or tourism. Such developmental impacts have been cited by arts supports as an important reason for public attention to the arts