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Effects of economic incentives in the American film industry: an ecological approach

Author

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  • Nina F. O’Brien
  • Christianne J. Lane

Abstract

US states have offered billions of dollars in film industry incentives, but despite the popularity of these incentives, the effects of these investments are unclear. This study adopts an ecological framework and tests the hypothesis that film incentives are effective when they produce changes in the composition of organizational communities. The results of longitudinal linear mixed-effects models, centred around incentive introduction in each state, show that above the impact of their dollar value, the simple presence of economic incentives, organizational diversity and the presence of dominant organizational populations are associated with increases in filming, employment and new establishments. Theoretical and policy implications are discussed.

Suggested Citation

  • Nina F. O’Brien & Christianne J. Lane, 2018. "Effects of economic incentives in the American film industry: an ecological approach," Regional Studies, Taylor & Francis Journals, vol. 52(6), pages 865-875, June.
    • Handle: RePEc:taf:regstd:v:52:y:2018:i:6:p:865-875
    DOI: 10.1080/00343404.2017.1360475
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    Cited by:

    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(1), August.
    2. Rickman, Dan & Wang, Hongbo, 2020. "Lights, Camera, What Action? The Nascent Literature on the Economics of US State Film Incentives," MPRA Paper 104477, University Library of Munich, Germany.
    3. John Charles Bradbury, 2020. "Do Film Incentive Programs Promote Economic Activity? A Comment on O'Brien and Lane," Econ Journal Watch, Econ Journal Watch, vol. 17(1), pages 1-56–65, March.
    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. 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.
    6. Andrew Phiri, 2020. "Creative industries and economic performance: Should South Africa go to the movies?," Working Papers 2002, Department of Economics, Nelson Mandela University, revised Jan 2020.

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