IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v38y2020i2p327-342.html

Do Movie Production Incentives Generate Economic Development?

Author

Listed:
  • John Charles Bradbury

Abstract

Movie production incentives (MPIs) are a popular economic development strategy employed by U.S. states. Film subsidies are intended to encourage external investment into a nascent industry that spills over onto complementary industries to generate economic growth through a multiplier. Despite their widespread use, the positive impact of MPIs on state economies has not been documented, and several states have halted their MPI programs due to high costs and questionable efficacy. This study exploits the staggered implementation, suspension, and elimination of film incentive programs across states to estimate the macroeconomic impact of MPIs. Instrumental variable estimates that permit causal inference do not support the hypothesized positive impacts of film incentives on state economies. (JEL H25, H71, L82, R11, R38, Z11, Z18)

Suggested Citation

  • John Charles Bradbury, 2020. "Do Movie Production Incentives Generate Economic Development?," Contemporary Economic Policy, Western Economic Association International, vol. 38(2), pages 327-342, April.
    • Handle: RePEc:bla:coecpo:v:38:y:2020:i:2:p:327-342
    DOI: 10.1111/coep.12443
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/coep.12443
    Download Restriction: no
    File URL: https://libkey.io/10.1111/coep.12443?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard Adkisson, 2013. "Policy Convergence, State Film-Production Incentives, and Employment: A Brief Case Study," Journal of Economic Issues, Taylor & Francis Journals, vol. 47(2), pages 445-454.
    2. Dennis Coates & Brad R. Humphreys, 1999. "The growth effects of sport franchises, stadia, and arenas," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(4), pages 601-624.
    3. Coates, Dennis & Humphreys, Brad R., 2003. "The effect of professional sports on earnings and employment in the services and retail sectors in US cities," Regional Science and Urban Economics, Elsevier, vol. 33(2), pages 175-198, March.
    4. William F. Fox & Matthew N. Murray, 2004. "Do Economic Effects Justify the Use of Fiscal Incentives?," Southern Economic Journal, Southern Economic Association, vol. 71(1), pages 78-92, July.
    5. Button, Patrick, 2019. "Do tax incentives affect business location and economic development? Evidence from state film incentives," Regional Science and Urban Economics, Elsevier, vol. 77(C), pages 315-339.
    6. Carlianne Patrick, 2016. "Identifying The Local Economic Development Effects Of Million Dollar Facilities," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1737-1762, October.
    7. Crain, W Mark & Lee, Katherine J, 1999. "Economic Growth Regressions for the American States: A Sensitivity Analysis," Economic Inquiry, Western Economic Association International, vol. 37(2), pages 242-257, April.
    8. Timothy J. Bartik & Nathan Sotherland, 2019. "Local Job Multipliers in the United States: Variation with Local Characteristics and with High-Tech Shocks," Upjohn Working Papers 19-301, W.E. Upjohn Institute for Employment Research.
    9. Peter T. Calcagno & Henry Thompson, 2004. "State Economic Incentives: Stimulus or Reallocation?," Public Finance Review, , vol. 32(6), pages 651-665, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Velma Zahirovic-Herbert & Karen M Gibler, 2022. "The effect of film production studios on housing prices in Atlanta, the Hollywood of the South," Urban Studies, Urban Studies Journal Limited, vol. 59(4), pages 771-788, March.
    2. Scavette, Adam, 2023. "The economic impact of a casino monopoly: Evidence from Atlantic City," Regional Science and Urban Economics, Elsevier, vol. 103(C).
    3. Gary A. Wagner & Javier E. Portillo, 2024. "Cashing in on culture: local employment effects from art and cultural district designation," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 48(4), pages 645-684, December.
    4. 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(01), August.
    5. Dan S. Rickman & Hongbo Wang, 2023. "Creating and maintaining film clusters: Synthetic control method analysis of the enactment and repeal of US state film incentives," Papers in Regional Science, Wiley Blackwell, vol. 102(2), pages 363-392, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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(01), August.
    2. Andrew Hanson & Shawn Rohlin, 2024. "Local employment multipliers for large publicly subsidized firms: Evidence from a synthetic control approach," Journal of Regional Science, Wiley Blackwell, vol. 64(2), pages 491-526, March.
    3. Gabriel Ahlfeldt & Wolfgang Maennig, 2010. "Impact of sports arenas on land values: evidence from Berlin," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(2), pages 205-227, April.
    4. Rickman, Dan & Wang, Hongbo, 2020. "Assessing State Economic Development from Motion Picture and Television Production Incentives: Standardizing the Industry for Analysis," MPRA Paper 104052, University Library of Munich, Germany.
    5. Florian Hagn & Wolfgang Maennig, 2007. "Labour Market Effects of the 2006 Soccer World Cup in Germany," Working Papers 008, Chair for Economic Policy, University of Hamburg.
    6. Phillip Miller, 2009. "Subsidized monopolists and product prices: the case of Major League Baseball," Applied Economics, Taylor & Francis Journals, vol. 41(25), pages 3249-3255.
    7. Matthias Brachert, 2021. "Regional effects of professional sports franchises: causal evidence from four European football leagues," Regional Studies, Taylor & Francis Journals, vol. 55(2), pages 295-306, February.
    8. Timothy J. Bartik & George A. Erickcek, 2012. "Simulating the Effects of Michigan's MEGA Tax Credit Program on Job Creation and Fiscal Benefits," Upjohn Working Papers 12-185, W.E. Upjohn Institute for Employment Research.
    9. Robert A. Baade & Robert W. Baumann & Victor A. Matheson, 2008. "Assessing the Economic Impact of College Football Games on Local Economies," Journal of Sports Economics, , vol. 9(6), pages 628-643, December.
    10. Alec Workman, 2021. "Ready for a Close-Up: The Effect of Tax Incentives on Film Production in California," Economic Development Quarterly, , vol. 35(2), pages 125-140, May.
    11. Dolan, Paul & Kavetsos, Georgios & Krekel, Christian & Mavridis, Dimitris & Metcalfe, Robert & Senik, Claudia & Szymanski, Stefan & Ziebarth, Nicolas R., 2019. "Quantifying the intangible impact of the Olympics using subjective well-being data," Journal of Public Economics, Elsevier, vol. 177(C), pages 1-1.
    12. Xia Feng & Brad R. Humphreys, 2008. "Assessing the Economic Impact of Sports Facilities on Residential Property Values: A Spatial Hedonic Approach," Working Papers 0812, International Association of Sports Economists;North American Association of Sports Economists.
    13. Michael C. Davis & Christian M. End, 2010. "A Winning Proposition: The Economic Impact Of Successful National Football League Franchises," Economic Inquiry, Western Economic Association International, vol. 48(1), pages 39-50, January.
    14. Jesyca Salgado-Barandela & à ngel Barajas & Patricio Sánchez-Fernández, 2021. "Sport-event portfolios: An analysis of their ability to attract revenue from tourism," Tourism Economics, , vol. 27(3), pages 436-454, May.
    15. Agha, Nola & Rascher, Daniel, 2013. "When can economic impact be positive? Nine conditions that explain why smaller sports can have bigger impacts," MPRA Paper 48016, University Library of Munich, Germany.
    16. Timothy J. Bartik, 2018. ""But For" Percentages for Economic Development Incentives: What percentage estimates are plausible based on the research literature?," Upjohn Working Papers 18-289, W.E. Upjohn Institute for Employment Research.
    17. Philip K. Porter & Daniel M. Chin, 2012. "Economic Impact of Sports Events," Chapters, in: Wolfgang Maennig & Andrew Zimbalist (ed.), International Handbook on the Economics of Mega Sporting Events, chapter 15, Edward Elgar Publishing.
    18. Feddersen, Arne & Maennig, Wolfgang, 2012. "Sectoral labour market effects of the 2006 FIFA World Cup," Labour Economics, Elsevier, vol. 19(6), pages 860-869.
    19. Roberto Gásquez & Vicente Royuela, 2014. "Is Football an Indicator of Development at the International Level?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(3), pages 827-848, July.
    20. Robert Baade & Robert Baumann & Victor Matheson, 2011. "Big Men on Campus: Estimating the Economic Impact of College Sports on Local Economies," Regional Studies, Taylor & Francis Journals, vol. 45(3), pages 371-380.

    More about this item

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:coecpo:v:38:y:2020:i:2:p:327-342. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.