Does Program Evaluation Affect Program Termination? Insights from the Repeal of Corporate Tax Incentives for the Motion Picture Industry(sic)(sic)(sic)Palabras clave

Policy termination is an understudied phenomenon. The literature identifies some factors that affect its likelihood, but others' importance, especially program evaluation, remain ambiguous. For insight, this study examines the impact of independent program evaluation on the termination of tax incentives for film and television production adopted and then terminated by multiple state governments. Empirical results indicate that termination was significantly more likely after an evaluation showed the incentive's costs exceeded its benefits. Results also indicate a contagion effect. Other factors, including the incentive's age and employment in the entertainment industry, reduced termination likelihood. These findings persisted through several robustness and sensitivity checks. Although critical program evaluation does not guarantee termination, it appears to make it a more likely outcome.

Automated summary

This study investigates the impact of independent program evaluation on the termination of tax incentives for film and television production. The findings suggest that termination is more likely when the evaluation shows costs exceeding benefits, along with a contagion effect and other factors such as the incentive's age and employment in the entertainment industry. These results persist through various robustness checks.