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Striking Out? The Economic Impact of Major League Baseball Work Stoppages on Host Communities

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Author Info

  • Victor Matheson

    ()
    (Department of Economics, College of the Holy Cross)

  • Robert Baade

    ()
    (Department of Economics and Business, Lake Forest College)

Abstract

Major League Baseball teams have used the lure of economic riches as an incentive for cities to construct new stadiums at considerable public expense. Estimates of the economic impact of a MLB on host communities have typically been in the vicinity of $300 million. Our analysis suggest these numbers are wildly inflated. Using the baseball strikes of 1981, 1994, and 1995 as test cases, we find the net economic impact for a MLB team on a host city of $16.2 million under one model and $132.3 million under a second model.

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File URL: http://college.holycross.edu/RePEc/hcx/Matheson_Strikes.pdf
File Function: Original version presented to Williams College Economics Department in September 2002.
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Bibliographic Info

Paper provided by College of the Holy Cross, Department of Economics in its series Working Papers with number 0507.

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Length: 34 pages
Date of creation: Apr 2005
Date of revision:
Handle: RePEc:hcx:wpaper:0507

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Web page: http://www.holycross.edu/departments/economics/website/
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Related research

Keywords: impact analysis; sports; baseball; strikes; sports economics;

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References

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  1. Robert Baade & Victor Matheson, 1999. "An assessment of the economic impact of the american football championship, the Superbowl, on host communities," IASE Conference Papers 9903, International Association of Sports Economists.
  2. Robert A. Baade & Victor A. Matheson, 2001. "Home Run or Wild Pitch?," Journal of Sports Economics, , vol. 2(4), pages 307-327, November.
  3. John J. Siegfried & Andrew Zimbalist, 2000. "The Economics of Sports Facilities and Their Communities," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 95-114, Summer.
  4. Dennis Coates & Brad R. Humphreys, 1999. "The growth effects of sport franchises, stadia, and arenas," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(4), pages 601-624.
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Citations

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Cited by:
  1. Robert Baade & Robert Baumann & Victor Matheson, 2006. "The Economic Consequences of Professional Sports Strikes and Lockouts: Revisited," Working Papers 0604, College of the Holy Cross, Department of Economics.
  2. Agha, Nola & Rascher, Daniel, 2013. "When can economic impact be positive? Nine conditions that explain why smaller sports can have bigger impacts," MPRA Paper 48016, University Library of Munich, Germany.

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