In a new study published in the Journal of Cultural Economics, Mr. Weber and Prof. Marchand (with Prof. Kunz from Bauhaus University Weimar) investigate the influence of public film financing. For this purpose, they analyze an extensive data set of nearly 2000 feature films produced in Germany over a period of 10 years.
The results show the positive impact of public financing on the success of feature films, indirectly by attracting private funding and directly by increasing local and global box office receipts. However, public film financing does not directly improve the quality of films, which contradicts one of the goals of public financing. The analyses reveal several correlations and interaction effects related to financing and the quality signals sent by actors, directors, and producers of films. Here, public financing proves to be not only relevant for the economic success of films, but also a factor that thereby supports their cultural contribution.
The publication can be downloaded here.