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Attendance and pricing at sporting events: empirical results from Granger Causality Tests for the Melbourne Cup

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Author Info

  • Paresh Kumar Narayan
  • Russell Smyth

Abstract

This study applies Granger causality tests to examine the relationship between attendance, admission prices and real income at the Melbourne Cup, which is Australia's premier horseracing event and one of the world's leading handicap races. The motivation for the paper is that while market demand suggests that causation should run from admission price to attendance, it is equally plausible that sporting authorities could alter admission prices in response to a change in demand reflected in attendance. The main findings are that in the short-run there is unidirectional Granger causality running from income to attendance, attendance to admission price and income to admission price, while in the long run both admission price and income Granger cause attendance.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 35 (2003)
Issue (Month): 15 ()
Pages: 1649-1657

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Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1649-1657

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Cited by:
  1. Paresh Kumar Narayan & Seema Narayan & Biman Chand Prasad, 2008. "Forecasting Fiji's exports and imports, 2003-2020," International Journal of Social Economics, Emerald Group Publishing, vol. 35(12), pages 1005-1016, October.
  2. Andrew C. Worthington, 2007. "National Exuberance: A Note On The Melbourne Cup Effect In Australian Stock Returns," Economic Papers, The Economic Society of Australia, vol. 26(2), pages 170-179, 06.
  3. Narayan, Paresh Kumar & Narayan, Seema, 2005. "Estimating income and price elasticities of imports for Fiji in a cointegration framework," Economic Modelling, Elsevier, vol. 22(3), pages 423-438, May.
  4. Ansgar Belke & Thorsten Polleit, 2006. "Monetary policy and dividend growth in Germany: long-run structural modelling versus bounds testing approach," Applied Economics, Taylor & Francis Journals, vol. 38(12), pages 1409-1423.
  5. Makin, Anthony J. & Narayan, Paresh Kumar, 2008. "Have US external imbalances been determined at home or abroad?," Economic Modelling, Elsevier, vol. 25(3), pages 520-531, May.
  6. Chew Ging LEE, 2010. "The Nexus of Outward Foreign Direct Investment and Income: Evidence from Singapore," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(1).

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