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Robust estimates of the impact of broadcasting on match attendance in football

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  • B Buraimo
  • D Forrest
  • R Simmons

Abstract

The paper employs data from 2,884 matches, of which 158 were televised, in the second tier of English football (currently known as The Football League Championship). It builds a model of the determinants of attendance that is designed to yield estimates of the proportionate changes in the size of crowds resulting from games being shown on either free-to-air or subscription based channels. The model has two innovatory features. First, it controls for the market size of home and away teams very precisely by including local population measures constructed from the application of GIS software and information on competition from other clubs. Second, it employs the Hausman-Taylor random effects estimator in order to take explicit account of the endogeneity of the television coverage variable and of other variables typically included in earlier studies based on ordinary least squares or fixed effects models of attendance. The Hausman-Taylor estimates of the impact of broadcasting are greater than those reported in such studies. In the case of free-to-air television, the negative impact is estimated as over 20 percent but for subscription television, which carried most of the transmissions, the negative effect was only of the order of 5 percent.

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Bibliographic Info

Paper provided by Lancaster University Management School, Economics Department in its series Working Papers with number 574575.

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Date of creation: 2006
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Handle: RePEc:lan:wpaper:574575

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  1. Jaume Garcia & Placido Rodriguez, 2002. "The Determinants of Football Match Attendance Revisited: Empirical Evidence from the Spanish Football League," Journal of Sports Economics, , vol. 3(1), pages 18-38, February.
  2. Peter Egger & Michael Pfaffermayr, 2001. "Distance, Trade and FDI: A Hausman-Taylor SUR Approach," WIFO Working Papers 164, WIFO.
  3. Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-98, November.
  4. David Forrest & Rob Simmons & Stefan Szymanski, 2004. "Broadcasting, Attendance and the Inefficiency of Cartels," Review of Industrial Organization, Springer, vol. 24(3), pages 243-265, 05.
  5. Martin B. Schmidt & David J. Berri, 2001. "Competitive Balance and Attendance: The Case of Major League Baseball," Journal of Sports Economics, , vol. 2(2), pages 145-167, May.
  6. Forrest, David & Simmons, Robert & Feehan, Patrick, 2002. "A Spatial Cross-Sectional Analysis of the Elasticity of Demand for Soccer," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(3), pages 336-55, August.
  7. (*), Nigel Rice & Paul Contoyannis, 2001. "The impact of health on wages: Evidence from the British Household Panel Survey," Empirical Economics, Springer, vol. 26(4), pages 599-622.
  8. Baltagi, Badi H & Khanti-Akom, Sophon, 1990. "On Efficient Estimation with Panel Data: An Empirical Comparison of Instrumental Variables Estimators," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(4), pages 401-06, Oct.-Dec..
  9. Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 478-502, Winter.
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Cited by:
  1. Kshitija Dixit & Rupayan Pal, 2010. "The impact of group incentives on performance of small firms: Hausman-Taylor estimates," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(6), pages 403-414.

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