Government Intervention in Iranian Performing Arts Market: Lessons and Policy Implications

Government interventions can play an important role in the production process. Since there are different views on government intervention in the market, this paper discusses these views and explains the current situation of government intervention in Iran's theater production. In order to explain the effects of government intervention on theater market, theater productions data during the period 1389 to 1394 were used. The results indicate that government tries to manage the market through infrastructure development, regulations, price distortions and some discretionary policies, but the effectiveness is not as expected. The paper discusses policy implications of Iranian experience of government intervention in theater productions. These implications suggest that the interventionist government should set its policies base on more development of infrastructures, not regulating more than optimum, least complexity of the rules and procedures and minimum distortions in prices of inputs and outputs, and in addition, strictly avoids any discretionary intervention.
Government interventions can play an important role in the production process. Since there are different views on government intervention in the market, this paper discusses these views and explains the current situation of government intervention in Iran's theater production. In order to explain the effects of government intervention on theater market, theater productions data during the period 1389 to 1394 were used. The results indicate that government tries to manage the market through infrastructure development, regulations, price distortions and some discretionary policies, but the effectiveness is not as expected. The paper discusses policy implications of Iranian experience of government intervention in theater productions. These implications suggest that the interventionist government should set its policies base on more development of infrastructures, not regulating more than optimum, least complexity of the rules and procedures and minimum distortions in prices of inputs and outputs, and in addition, strictly avoids any discretionary intervention.