Do New Major League Ballparks Pay for Themselves?
AbstractIn recent decades local governments have allocated billions of dollars to subsidizing construction of facilities for major league baseball. We use panel data that cover all major league baseball teams from 1989–2001 to estimate the impact of ballpark construction on team revenue. Our estimates imply that a typical new ballpark generates additional revenue sufficient to cover most or all of its capital cost. It follows that any external benefits of ballpark construction are likely to be inframarginal and that continuance of large public subsidies cannot be justified on economic grounds.
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Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Business.
Volume (Year): 79 (2006)
Issue (Month): 5 (September)
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Web page: http://www.journals.uchicago.edu/JB/
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Stadium renovations and cost overruns - further recent evidence
by Sam Richardson in Fair Play and Forward Passes on 2013-01-08 01:00:00
- Trenton Smith & Young H. Lee, 2006. "Why are Americans Addicted to Baseball? An Empirical Analysis of Fandom in Korea and the U.S," Working Papers 2006-05, School of Economic Sciences, Washington State University.
- Dong C. Won & Young H. Lee, 2008. "Optimal dynamic pricing for sports games with habitual attendance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 639-655.
- Young Hoon Lee, 2009. "Estimation of Temporal Variations in Fan Loyalty: Application of Multi-Factor Models," Working Papers 0902, Research Institute for Market Economy, Sogang University, revised 2009.
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