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When can economic impact be positive? Nine conditions that explain why smaller sports can have bigger impacts

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  • Agha, Nola
  • Rascher, Daniel

Abstract

This explanatory research reviews the economic impact literature to identify the conditions that would theoretically allow any sport, large or small, to generate positive economic effects. Nine conditions are identified that, when present, could allow a community to experience a positive economic impact from a team or stadium. The nine conditions are then used to explain the discrepancy in known empirical outcomes in Major and Minor League Baseball. It appears as if major league teams are more likely to violate the conditions while minor league teams are not. This research finds theoretical support for previous suggestions that smaller teams and events may be beneficial to local economies. In doing so, it also explains previous empirical results that found some minor league baseball classifications are associated with positive gains in per capita income.

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File URL: http://mpra.ub.uni-muenchen.de/48016/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 48016.

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Date of creation: 04 Jul 2013
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Handle: RePEc:pra:mprapa:48016

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Keywords: economic impact; minor league baseball; MLB; stadiums; efficiency;

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  1. Robert Baade & Victor Matheson, 2004. "The Quest for the Cup: Assessing the Economic Impact of the World Cup," IASE Conference Papers, International Association of Sports Economists 0406, International Association of Sports Economists.
  2. Coates, Dennis & Humphreys, Brad R., 2003. "The effect of professional sports on earnings and employment in the services and retail sectors in US cities," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 33(2), pages 175-198, March.
  3. Dennis Coates & Brad R. Humphreys, 2001. "The Economic Consequences of Professional Sports Strikes and Lockouts," Southern Economic Journal, Southern Economic Association, vol. 67(3), pages 737-747, January.
  4. Robert A. Baade & Victor A. Matheson, 2001. "Home Run or Wild Pitch?," Journal of Sports Economics, , vol. 2(4), pages 307-327, November.
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  6. Nola Agha, 2013. "The Economic Impact of Stadiums and Teams," Journal of Sports Economics, , vol. 14(3), pages 227-252, June.
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  10. Robert Baade & Robert Baumann & Victor Matheson, 2005. "Selling the Big Game: Estimating the Economic Impact of Mega-Events through Taxable Sales," Working Papers, College of the Holy Cross, Department of Economics 0510, College of the Holy Cross, Department of Economics.
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  15. John Siegfried & Andrew Zimbalist, 2002. "A Note on the Local Economic Impact of Sports Expenditures," Journal of Sports Economics, , vol. 3(4), pages 361-366, November.
  16. Seth R. Gitter & Thomas Rhoads, 2010. "Stadium Construction and Minor League Baseball Attendance," Working Papers, Towson University, Department of Economics 2010-06, Towson University, Department of Economics, revised Mar 2010.
  17. T. Johnson, 1998. "Minor League Baseball: Risks And Potential Benefits For Communities Large And Small," Review of Policy Research, Policy Studies Organization, vol. 15(1), pages 45-55, 03.
  18. Steven Cobb & Douglas J. Olberding, 2007. "The Importance of Import Substitution in Marathon Economic Impact Analysis," International Journal of Sport Finance, Fitness Information Technology, Fitness Information Technology, vol. 2(2), pages 108-118, May.
  19. Seth R. Gitter & Thomas A. Rhoads, 2010. "Determinants of Minor League Baseball Attendance," Journal of Sports Economics, , vol. 11(6), pages 614-628, December.
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