Goff, Brian; Wilson, Dennis; Zimmer, David - In: Applied Economics and Finance 2 (2015) 1, pp. 33-43
R-rated films are correlated with lower box office revenues. Using sex and nudity content as an instrument to predict R-ratings, we show that R-ratings themselves are not the cause of lower revenues. Instead, R-rated films contain traits that lower revenues and the ratings act as a signal of...