Time and productivity growth in services: how motion pictures industrialized entertainment
When taking into account time, services can experience similar productivity gains as manufacturing. Motion pictures constituted the first technology that industrialized a labour-intensive service. Measuring output in time spent consuming them doubles output growth from 4.2 to as much as 9 percent per annum, accounting for 2 percent of U.S. GDP-growth between 1900 and 1938. Pure productivity growth caused 60 percent of this, their growing GDP-share 24 percent, and input transfers and physical capital each 8 percent. Falling ticket prices and rising opportunity costs kept the full-cost per spectator-hour constant, suggesting that the surge in demand was caused by rising full incomes and entertainment’s high income elasticity. Imploding prices limited the pictures’ expenditure share and made the economic impact go largely unnoticed.
|Date of creation:||Mar 2009|
|Date of revision:|
|Contact details of provider:|| Postal: LSE, Dept. of Economic History Houghton Street London, WC2A 2AE, U.K.|
Phone: +44 (0) 20 7955 7084
Web page: http://www.lse.ac.uk/economicHistory/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Huberman, Michael & Minns, Chris, 2007. "The times they are not changin': Days and hours of work in Old and New Worlds, 1870-2000," Explorations in Economic History, Elsevier, vol. 44(4), pages 538-567, October.
- John W. Kendrick, 1961. "Productivity Trends in the United States," NBER Books, National Bureau of Economic Research, Inc, number kend61-1, September.
- Charles R. Hulten, 1978. "Growth Accounting with Intermediate Inputs," Review of Economic Studies, Oxford University Press, vol. 45(3), pages 511-518.
- Albert Fishlow, 1966. "Productivity and Technological Change in the Railroad Sector, 1840–1910," NBER Chapters, in: Output, Employment, and Productivity in the United States after 1800, pages 583-646 National Bureau of Economic Research, Inc.
- Leunig, Timothy, 2006.
"Time is Money: A Re-Assessment of the Passenger Social Savings from Victorian British Railways,"
The Journal of Economic History,
Cambridge University Press, vol. 66(03), pages 635-673, September.
- Tim Leunig, 2005. "Time is money: a re-assessment of the passenger social savings from Victorian British railways," Economic History Working Papers 22551, London School of Economics and Political Science, Department of Economic History.
- Darby, Michael R, 1976.
"Three-and-a-Half Million U.S. Employees Have Been Mislaid: Or, an Explanation of Unemployment, 1934-1941,"
Journal of Political Economy,
University of Chicago Press, vol. 84(1), pages 1-16, February.
- Michael R. Darby, 1975. "Three-And-A-Half Million U.S. Employees Have Been Mislaid: Or, An Explanation of Unemployment, 1934-1941," NBER Working Papers 0088, National Bureau of Economic Research, Inc.
- John G. Fernald, 1997.
"Roads to prosperity? assessing the link between public capital and productivity,"
International Finance Discussion Papers
592, Board of Governors of the Federal Reserve System (U.S.).
- John G. Fernald, 1999. "Roads to Prosperity? Assessing the Link between Public Capital and Productivity," American Economic Review, American Economic Association, vol. 89(3), pages 619-638, June.
- Miller, Richard D. & Frech, Ted, 2002. "The Productivity of Health Care and Pharmaceuticals: Quality of Life, Cause," University of California at Santa Barbara, Economics Working Paper Series qt4b55f1xp, Department of Economics, UC Santa Barbara.
- van Ark, Bart, 1998. "Productivity," Journal of the Japanese and International Economies, Elsevier, vol. 12(2), pages 171-174, June.
- Chris Freeman & Luc Soete, 1997. "The Economics of Industrial Innovation, 3rd Edition," MIT Press Books, The MIT Press, edition 3, volume 1, number 0262061953, December.
- Layard, Richard, 1981. "Measuring the Duration of Unemployment: A Note," Scottish Journal of Political Economy, Scottish Economic Society, vol. 28(3), pages 273-77, November.
- Alexander J. Field, 2003. "The Most Technologically Progressive Decade of the Century," American Economic Review, American Economic Association, vol. 93(4), pages 1399-1413, September.
- Lamson, Robert D, 1970. "Measured Productivity and Price Change: Some Empirical Evidence on Service Industry Bias, Motion Picture Theaters," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 291-305, March-Apr.
- Broadberry, Stephen & Ghosal, Sayantan, 2002. "From the Counting House to the Modern Office: Explaining Anglo-American Productivity Differences in Services, 1870 1990," The Journal of Economic History, Cambridge University Press, vol. 62(04), pages 967-998, December.
- Alan B. Krueger, 2007. "Are We Having More Fun Yet? Categorizing and Evaluating Changes in Time Alloction," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 38(2), pages 193-218.
When requesting a correction, please mention this item's handle: RePEc:ehl:wpaper:27866. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (LSERO Manager on behalf of EH Dept.)
If references are entirely missing, you can add them using this form.