Yi Yi (2000)

Edward Yang's Taiwanese family drama is the #1 novelistic film in this list, spanning three generations over a single eventful summer in Taipei with quiet observation. At three hours, it sustains a 93% Rotten Tomatoes score—outpacing #8 The Lives of Others by 5% in critical consensus—and won Best Director at Cannes in 2000. Its $1.2 million production cost is 60% lower than the average for this category, yet it is faster paced than #5 Pan's Labyrinth in emotional impact.