Motion picture production incentives and filming location decisions: a discrete choice approach
| Autor: | Mark F. Owens, Adam D. Rennhoff |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
Economics and Econometrics
Discrete choice Motion picture Computer science 05 social sciences Geography Planning and Development 0506 political science Microeconomics Incentive 0502 economics and business 050602 political science & public administration Production (economics) 050207 economics ComputingMilieux_MISCELLANEOUS |
| Zdroj: | Journal of Economic Geography. 20:679-709 |
| ISSN: | 1468-2710 1468-2702 |
| DOI: | 10.1093/jeg/lby054 |
| Popis: | We use a discrete choice model to study the impact of tax incentives on firm location choices in situations involving heterogeneous geographic characteristics, heterogeneous firm preferences and large choice sets. We apply our model to investigate the impact of movie production incentives on filming location choices for movies produced from 1999 to 2013. We gather the characteristics of filming locations and use a machine-learning technique to define choice sets. We find production incentives can attract movies to a state, but the impact depends on the type of incentive offered, studio characteristics and inherent location geographic characteristics. Mid-sized studios respond to all forms of incentives, major studios respond only to refundable and transferable tax credits, and independent studios are not sensitive to any incentives. We fail to find strong evidence that incentives create a more permanent movie industry in a state. A counterfactual identifies the states most impacted by these policies. We supplement our discrete choice model with a simple cost-benefit analysis, which indicates that movie incentive programs are revenue-negative for states. |
| Databáze: | OpenAIRE |
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