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A Winning Proposition: The Economic Impact Of Successful National Football League Franchises

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  • MICHAEL C. DAVIS
  • CHRISTIAN M. END

Abstract

"Research has demonstrated that a Super Bowl victory increases the personal income of the individuals in the metropolitan area from which the winning teams come. We argue that the economic benefits should extend beyond just the championship team's city to the cities of teams that experience seasonal success, and thus, the winning percentages of National Football League teams were included in our model. When controlling for sources of bias, winning percentage of the local professional football team had a significant positive effect on real per capita personal income. Explanations for these conclusions are offered from a psychological perspective." ("JEL" L83, R19) Copyright (c) 2008 Western Economic Association International.

Suggested Citation

  • Michael C. Davis & Christian M. End, 2010. "A Winning Proposition: The Economic Impact Of Successful National Football League Franchises," Economic Inquiry, Western Economic Association International, vol. 48(1), pages 39-50, January.
  • Handle: RePEc:bla:ecinqu:v:48:y:2010:i:1:p:39-50
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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1465-7295.2008.00124.x
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    References listed on IDEAS

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    1. J. Joseph Beaulieu & Jeffrey K. MacKie-Mason & Jeffrey A. Miron, 1992. "Why Do Countries and Industries with Large Seasonal Cycles Also Have Large Business Cycles?," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 621-656.
    2. Robert Baade & Victor Matheson, 2004. "The Quest for the Cup: Assessing the Economic Impact of the World Cup," Regional Studies, Taylor & Francis Journals, pages 343-354.
    3. Cecchetti, Stephen G & Kashyap, Anil K & Wilcox, David W, 1997. "Interactions between the Seasonal and Business Cycles in Production and Inventories," American Economic Review, American Economic Association, vol. 87(5), pages 884-892, December.
    4. Wen, Yi, 2002. "The business cycle effects of Christmas," Journal of Monetary Economics, Elsevier, vol. 49(6), pages 1289-1314, September.
    5. 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.
    6. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    7. Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October.
    8. Kiviet, Jan F., 1995. "On bias, inconsistency, and efficiency of various estimators in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 68(1), pages 53-78, July.
    9. Dennis Coates & Brad R. Humphreys, 2002. "The Economic Impact of Postseason Play in Professional Sports," Journal of Sports Economics, , vol. 3(3), pages 291-299, August.
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    Citations

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    Cited by:

    1. Arne Feddersen & Wolfgang Maennig, 2013. "Mega-Events And Sectoral Employment: The Case Of The 1996 Olympic Games," Contemporary Economic Policy, Western Economic Association International, vol. 31(3), pages 580-603, July.
    2. Dennis Coates & Brad R. Humphreys, 2008. "Do Economists Reach a Conclusion on Subsidies for Sports Franchises, Stadiums, and Mega-Events?," Econ Journal Watch, Econ Journal Watch, vol. 5(3), pages 294-315, September.
    3. Victor Matheson, 2009. "Economics of the Super Bowl," Working Papers 0914, College of the Holy Cross, Department of Economics.
    4. Rudkin, Simon & Sharma, Abhijit, 2017. "The Impact of Football Attendance on Tourist Expenditures for the United Kingdom," MPRA Paper 81427, University Library of Munich, Germany.
    5. Jeroen Schokkaert & Johan F.M. Swinnen & Thijs Vandemoortele, 2012. "Mega Events and Sports Institutional Development: The Impact of the World Cup on Football Academies in Africa," Chapters,in: International Handbook on the Economics of Mega Sporting Events, chapter 19 Edward Elgar Publishing.
    6. Roberto Gásquez & Vicente Royuela, 2014. "Is Football an Indicator of Development at the International Level?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(3), pages 827-848, July.
    7. Michael C. Davis & Christian M. End, 2011. "Team Success, Productivity and Economic Impact," Chapters,in: The Economics of Sport, Health and Happiness, chapter 7 Edward Elgar Publishing.
    8. Robert Baumann & Victor A. Matheson, 2013. "Estimating economic impact using ex post econometric analysis: cautionary tales," Chapters,in: The Econometrics of Sport, chapter 10, pages 169-188 Edward Elgar Publishing.
    9. John K. Wilson & Richard Pomfret, 2014. "Public Policy and Professional Sports," Books, Edward Elgar Publishing, number 15381, April.

    More about this item

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R19 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Other

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