Effects of renewal investments in immovable cultural heritage on slovenian public finances: Convergence with selected eu countries

Abstract

In our paper we provide a measure of the optimal state incentive needed for the purpose of regular investment in maintaining immovable cultural heritage. Slovenia annually needs 32.7 million euros of investment for the maintenance of its immovable cultural heritage, which is feasible with 16.4 million euros of state subsidies. Comparing the mechanisms of selected EU countries, we show convergence occurrences using an indirect approach. Investments in cultural heritage represent an increase in one of the components of final demand with a positive impact on the economy. This was assessed with Leontief's production function (effect via reproduction chain). Investments in the maintenance of immovable cultural heritage also have a positive impact on tourism revenue. According to the results of the input-output analysis, regular maintenance annually results in 60.9 million euros' value added with 22.4 million euros higher general government revenue. The net fiscal effect of incentives for these investments is positive for 36.5% of public funds spent.