Preliminary Evidence on Film Production and State Incentives

摘要

This study examines whether state movie production incentives are effective in attracting and/or retaining movie production. The issue is of significant policy interest because of the large amounts spent by states for such subsidies. This study finds that while movie production incentives were effective in increasing the number of film production employment and establishments for a few states such as New York and California from 1998 to 2011, there was no discernable increase across all states. Much of this noneffect appears because of a crowding out effect due to the sheer number of states with incentives.