This research project attempts to determine the economic effects of arts activities and cultural institutions on a local community (Baltimore, Maryland). This document contains an economic impact model that uses 30 equations to determine direct and secondary effects on businesses, government, and individuals and a case study of the model involving eight Baltimore arts-related institutions. Section 1 describes the model's structure and strengths, and section 2 provides an overview of the Baltimore economy and arts community. Section 3 summarizes the results of the quantitative calculations for Baltimore and discusses the role of the arts in this city's economic development and executive recruitment, while section 4 provides tables of Baltimore arts-related economic data for 1976. Section 5 describes a detailed user's manual that explains the model and its applications. Appendices include: (1) a guide to model and data sources; (2) a description of multiplier and secondary effects; (3) the employee survey; (4) a discussion about audience surveys; (5) methods of identifying full-time and full-time equivalent employees; and (6) equation changes required when data represents multi-institutions or multi-jurisdiction. Tables and equations are included. (JHP)