When can economic impact be positive? Nine conditions that explain why smaller sports can have bigger impacts
AbstractThis 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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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 48016.
Date of creation: 04 Jul 2013
Date of revision:
economic impact; minor league baseball; MLB; stadiums; efficiency;
Find related papers by JEL classification:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-15 (All new papers)
- NEP-PBE-2013-07-15 (Public Economics)
- NEP-SPO-2013-07-15 (Sports & Economics)
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