Universidad de Granada. Departamento de Teoría e Historia Económica
Abstract
This article analyzes the effect of subsidies and awards on the Spanish motion picture industry. We estimate a Cobb-Douglas production function using regional data, showing that it exhibits constant returns to scale and that awards positively affect movie production, while subsidies have no effect. In fact, awards affect the productivity of the sector since they allow for an increase in the output, which is not explained by an increase in inputs.Financial support from the Spanish Ministry
of Education and Science and the Junta de Andalucía through Projects SEJ2007-
62081/ECON and SEJ-2547, respectively