At the origins of increased productivity growth in services. Productivity, social savings and the consumer surplus of the film industry, 1900-1938

Gerben Bakker

Economic History Working Papers from London School of Economics and Political Science, Department of Economic History

Abstract: This paper estimates and compares the benefits cinema technology generated to society in Britain, France and the US between 1900 and 1938. It is shown how cinema industrialised live entertainment, by standardisation, automation and making it tradable. The economic impact is measured in three ways: TFP-growth, social savings in 1938 and the consumer surplus enjoyed in 1938. Preliminary findings suggest that the entertainment industry accounted for 1.5 to 1.7 percent of national TFP-growth and for 0.9 to 1.6 percent of real GDP-growth in the three countries. Social savings were highest in the US (c. 2.5 billion dollars and three million workers) and relatively modest in Britain and France, possibly because of the relative abundance of skilled live-entertainment workers. Comparative social savings at entertainment PPP-ratios inflate British social savings to above the US level. Converging exchange rates and PPP price ratios suggest rapid international market integration. The paper’s methodology and findings may give insight in technological change in other service industries that were also industrialised.

JEL-codes: B1 F3 G3 L82 N0 O52 (search for similar items in EconPapers)
Pages: 89 pages
Date: 2004-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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