Producing drama: a comparison of film tax incentives to alternative uses

Devin Brady, Adam T. Jones and Ethan Watson

Applied Economics Letters, 2018, vol. 25, issue 17, 1189-1192

Abstract: Incentive packages are popular tools for economic development. However, development projects are often considered in isolation without an analysis of opportunity costs. In this study, we use an intuitive framework for comparing projects and weigh alternate projects against North Carolina’s film incentive programme. The results indicate that there are substantial differences in the economic impact of the projects we consider in this study. Our results suggest that policy decisions by governments and economic development officials should weigh a potential project against alternative uses in order to optimize the use of incentives.

Date: 2018
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DOI: 10.1080/13504851.2017.1406652

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