Graduation Year

2020

Date of Submission

5-2020

Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Darren Filson

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© 2020 Naveen R Shastri

Abstract

This thesis discusses the impact of movie production budgets on various revenue ratios. An OLS regression equation was created that compares the production budget of a movie to one of three movie revenue ratios. These ratios can be attributed to the relative elasticities of each revenue metric (domestic DVD sales, domestic box office revenues, and foreign box office revenues). Among other results, it seems that the elasticity for domestic DVD sales was relatively greater than the one representing domestic box office revenues. Also, foreign box office elasticities were relatively larger than either domestic revenue variable. These results imply different trends for movies, and should be utilized for further research on this topic.

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