Fade to Black? Exploring Policy Enactment and Termination Through the Rise and Fall of State Tax Incentives for the Motion Picture Industry

American Politics Research 45.1 (2017): 85-108.

24 Pages Posted: 23 Dec 2016 Last revised: 24 Mar 2017

See all articles by Michael Thom

Michael Thom

University of Southern California - Price School of Public Policy

Brian An

Georgia Institute of Technology

Date Written: December 23, 2016

Abstract

Policy termination has received less scholarly attention than policy diffusion, and empirical state-level studies that examine the rise and fall of the same policy are mostly absent from the literature. This study assesses the factors that led more than 45 states to enact and some to later repeal Motion Picture Incentive programs, a collection of tax incentives aimed at facilitating job creation and economic diversification. We find program enactments were driven by rising unemployment and national but not bordering state imitation. Falling unemployment and national trends drove subsequent terminations, but in many states, their impact was overwhelmed by the influence of incentive spending, which greatly reduced termination likelihood. These results not only shed light on policy enactments and terminations in general, but also inform scholarship on state tax incentives and the role of competitive factors in their creation and repeal — or lack thereof.

Keywords: termination, economic development, public policy

Suggested Citation

Thom, Michael and An, Brian, Fade to Black? Exploring Policy Enactment and Termination Through the Rise and Fall of State Tax Incentives for the Motion Picture Industry (December 23, 2016). American Politics Research 45.1 (2017): 85-108., Available at SSRN: https://ssrn.com/abstract=2889524

Michael Thom (Contact Author)

University of Southern California - Price School of Public Policy ( email )

Lewis Hall 312
Los Angeles, CA 90089-062
United States

Brian An

Georgia Institute of Technology ( email )

685 Cherry St
Atlanta, GA 30332
United States

HOME PAGE: http://www.brian-y-an.com

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