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Industry Aggregation and Assessment of State Economic Development from Motion Picture and Television Production Incentives

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  • Rickman, Dan S.
  • Wang, Hongbo

Abstract

Studies of the economics of state tax incentives for the motion picture and television industry use differing levels of industry aggregation. This study examines aggregate sector input-output multipliers for 48 states for the motion picture and television industry and shows how the aggregate multipliers may be inaccurate for most states. We conclude that the sub-category Motion Picture and Video Production (NAICS code 51211) most corresponds to the incentivized activity in the industry and the multipliers used in economic impact analyses of state film incentives need to reflect its presence within the aggregate sector. We conduct a hypothetical case study of Oklahoma, a state with little presence of NAICS 51211, using multipliers for the key film incentive states of Louisiana and New Mexico, two states with a large presence of NAICS 51211. The usefulness of the input-output employment multipliers for Louisiana and New Mexico are confirmed based on both cross-sectional correlations and time-series evidence obtained from a difference-in-difference approach.

Suggested Citation

  • Rickman, Dan S. & Wang, Hongbo, 2022. "Industry Aggregation and Assessment of State Economic Development from Motion Picture and Television Production Incentives," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 52(1), August.
    • Handle: RePEc:ags:jrapmc:339968
    DOI: 10.22004/ag.econ.339968
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