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The Performance of German Motion Pictures, Profits, and

  • Christian Jansen

    (Humboldt-University Berlin)

This paper discusses different mechanisms of subsidy allocation invoked by operation of law. We compare the allocation of subsidies via committees to the allocation of subsidies through the reference principle, which binds public support to performance at the box offce. The analysis is embedded in a broadly disposed regression analysis of the determinants of the performance of German movies in the theatrical market. It aims to identify market characteristics and contrasts the German case with studies that address foreign markets. Finally, the profitability of the industry is considered as the presumed economic non-viability of the industry constantly recurs in the public debate as an argument for subsidies.

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File URL: http://128.118.178.162/eps/io/papers/0302/0302002.pdf
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Paper provided by EconWPA in its series Industrial Organization with number 0302002.

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Length: 36 pages
Date of creation: 18 Feb 2003
Date of revision:
Handle: RePEc:wpa:wuwpio:0302002
Note: Type of Document - pdf; prepared on PC; pages: 36
Contact details of provider: Web page: http://128.118.178.162

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  1. Kornai, Janos, 1986. "The Soft Budget Constraint," Kyklos, Wiley Blackwell, vol. 39(1), pages 3-30.
  2. De Vany, A. & Walls, W.D., 1999. ""Uncertainty in the Movies: Does Star Power Reduce the Terror of the Box Office?"," Papers 98-99-10, California Irvine - School of Social Sciences.
  3. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-58, December.
  4. Adler, Moshe, 1985. "Stardom and Talent," American Economic Review, American Economic Association, vol. 75(1), pages 208-12, March.
  5. M. Bagella & L. Becchetti, 1999. "The Determinants of Motion Picture Box Office Performance: Evidence from Movies Produced in Italy," Journal of Cultural Economics, Springer, vol. 23(4), pages 237-256, November.
  6. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
  7. Steven Albert, 1998. "Movie Stars and the Distribution of Financially Successful Films in the Motion Picture Industry," Journal of Cultural Economics, Springer, vol. 22(4), pages 249-270, December.
  8. Kornai, J, 1979. "Resource-Constrained versus Demand-Constrained Systems," Econometrica, Econometric Society, vol. 47(4), pages 801-19, July.
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