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The Race that Stops a Nation: The Demand for the Melbourne Cup

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  • Paresh Kumar Narayan
  • Russell Smyth

Abstract

This article uses the bounds testing procedure to cointegration, within an autoregressive distributed lag framework to estimate the determinants of attendance at the Melbourne Cup from its inception from 1861 to 2002. Following the literature on the demand for professional team sports, attendance is specified as a function of economic, demographic and race‐specific factors. The main findings are that real income and population size are the major determinants of attendance in the long run, while in the short run the weather is the most important factor explaining attendance.

Suggested Citation

  • Paresh Kumar Narayan & Russell Smyth, 2004. "The Race that Stops a Nation: The Demand for the Melbourne Cup," The Economic Record, The Economic Society of Australia, vol. 80(249), pages 193-207, June.
    • Handle: RePEc:bla:ecorec:v:80:y:2004:i:249:p:193-207
    DOI: 10.1111/j.1475-4932.2004.00172.x
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    References listed on IDEAS

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    Cited by:

    1. Narayan, Paresh Kumar, 2005. "The government revenue and government expenditure nexus: empirical evidence from nine Asian countries," Journal of Asian Economics, Elsevier, vol. 15(6), pages 1203-1216, January.
    2. Narayan, Paresh Kumar, 2008. "An investigation of the behaviour of Australia's business cycle," Economic Modelling, Elsevier, vol. 25(4), pages 676-683, July.
    3. Andrew C. Worthington, 2007. "National Exuberance: A Note On The Melbourne Cup Effect In Australian Stock Returns," Economic Papers, The Economic Society of Australia, vol. 26(2), pages 170-179, June.
    4. Bethany J Wilson & Kirrilly R Thompson & Paul D McGreevy, 2021. "The race that segments a nation: Findings from a convenience poll of attitudes toward the Melbourne Cup Thoroughbred horse race, gambling and animal cruelty," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-13, March.

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