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Does Proximity to a New Sports Facility Affect Existing Businesses’ Survival Time?

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  • Geoffrey Propheter

Abstract

Existing literature on the economic impact of sports facilities fails to consider whether new facilities positively affect existing businesses. To fill this gap, data on existing establishments in Sacramento, CA, active from 2004 through 2018 were collected. The outcome of interest is existing businesses’ survival time. Using an accelerated failure time model in a difference-in-difference framework, retail establishments within a half mile of the Golden 1 Center are found to have survival times 53% shorter than otherwise similar retail establishments further away. Models also reveal existing establishments in other industries complementary to sports are not affected by the arena.

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  • Geoffrey Propheter, 2020. "Does Proximity to a New Sports Facility Affect Existing Businesses’ Survival Time?," Journal of Sports Economics, , vol. 21(5), pages 451-476, June.
    • Handle: RePEc:sae:jospec:v:21:y:2020:i:5:p:451-476
    DOI: 10.1177/1527002520917197
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    References listed on IDEAS

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    Cited by:

    1. Propheter, Geoffrey, 2020. "The effect of a new sports facility on property development: Evidence from building permits and a localized synthetic control," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 50(1), December.
    2. Abbiasov, Timur & Sedov, Dmitry, 2023. "Do local businesses benefit from sports facilities? The case of major league sports stadiums and arenas," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    3. Nola Agha & Daniel Rascher, 2021. "Economic Development Effects of Major and Minor League Teams and Stadiums," Journal of Sports Economics, , vol. 22(3), pages 274-294, April.
    4. Geoffrey Propheter, 2021. "Sports facilities and the local property tax base in recovery," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(5), pages 1687-1701, October.
    5. John Charles Bradbury, 2022. "The impact of sports stadiums on localized commercial activity: Evidence from a Business Improvement District," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 194-217, January.

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