At the origins of increased productivity growth in services. Productivity, social savings and the consumer surplus of the film industry, 1900-1938
AbstractThis paper estimates and compares the benefits cinema technology generated to society in Britain, France and the US between 1900 and 1938. It is shown how cinema industrialised live entertainment, by standardisation, automation and making it tradable. The economic impact is measured in three ways: TFP-growth, social savings in 1938 and the consumer surplus enjoyed in 1938. Preliminary findings suggest that the entertainment industry accounted for 1.5 to 1.7 percent of national TFP-growth and for 0.9 to 1.6 percent of real GDP-growth in the three countries. Social savings were highest in the US (c. 2.5 billion dollars and three million workers) and relatively modest in Britain and France, possibly because of the relative abundance of skilled live-entertainment workers. Comparative social savings at entertainment PPP-ratios inflate British social savings to above the US level. Converging exchange rates and PPP price ratios suggest rapid international market integration. The paper’s methodology and findings may give insight in technological change in other service industries that were also industrialised.
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Bibliographic InfoPaper provided by London School of Economics and Political Science, Department of Economic History in its series Economic History Working Papers with number 22348.
Length: 89 pages
Date of creation: Jan 2004
Date of revision:
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Postal: LSE, Dept. of Economic History Houghton Street London, WC2A 2AE, U.K.
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Find related papers by JEL classification:
- N0 - Economic History - - General
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
- F3 - International Economics - - International Finance
- G3 - Financial Economics - - Corporate Finance and Governance
- B1 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
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