Lights, Camera, Action: The Adoption of State Film Tax Credits

21 Pages Posted: 3 Jun 2016

See all articles by Emefa Sewordor

Emefa Sewordor

Georgia State University - Department of Public Administration & Urban Studies

David L. Sjoquist

Georgia State University

Date Written: Summer 2016

Abstract

Over the last 20 years, states have adopted tax incentives focused on film production. Louisiana adopted the first state tax incentive program for film production in 1992, and by 2009 such tax incentive programs had expanded to 44 states plus the District of Columbia. The purpose of this paper is to identify the factors that explain the pattern of adoption of state film tax incentive programs. We develop a theoretical framework for analyzing states’ decision to adopt these programs that considers both internal characteristics and diffusion. We empirically investigate the timing of states’ adoption of film tax incentives using the Cox proportional hazards model with time‐varying predictors. The estimates of many of the hazard ratios are consistent with our expectation, although several are statistically insignificant. As expected, the pattern of adoption across states supports the hypothesis that it is a “mimicking” phenomenon. However, we find that fiscal stress results in faster adoption of film tax credits, contrary to expectations, but consistent with the notion that states look at them as a “luxury.”

Suggested Citation

Sewordor, Emefa and Sjoquist, David L., Lights, Camera, Action: The Adoption of State Film Tax Credits (Summer 2016). Public Budgeting & Finance, Vol. 36, Issue 2, pp. 5-25, 2016, Available at SSRN: https://ssrn.com/abstract=2789237 or http://dx.doi.org/10.1111/pbaf.12090

Emefa Sewordor (Contact Author)

Georgia State University - Department of Public Administration & Urban Studies ( email )

Andrew Young School of Policy Studies
Atlanta, GA 30303-3083
United States

David L. Sjoquist

Georgia State University ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-413-0246 (Phone)

HOME PAGE: http://frp.aysps.gsu.edu/sjoquist/index.html

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
1,034
PlumX Metrics