An offer they couldn't refuse (but probably should have): the ineffectiveness of Italian state subsidies to movie-making

Abstract

Public financial support to national movie (film) production is typically conditional on very subjective artistic and socio-cultural criteria and objectives. Yet the question remains as to whether state subsidies actually help films at the box office. This paper shows the public grant regime in Italy did not develop the industry as intended, since in an overwhelming number of cases, production losses exceeded subsidy. The subsidy regime was ineffective and wasteful. Specific institutional and political features characterizing the Italian system are important components in this story. The conclusions will be of interest to all countries making commercial films.

Keywords:

• Arts and cultural Policy
• film
• Italy
• market failure
• movies
• subsidies

Notes

* The three films were: I Cento Passi (2000), Tano Da Morire (1997), Le Affinità Elettive (1996).