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Estimating economic impact using ex post econometric analysis: Cautionary tales

Author

Listed:
  • Robert Baumann

    (Department of Economics, College of the Holy Cross)

  • Victor Matheson

    (Department of Economics, College of the Holy Cross)

Abstract

This paper provides an overview of techniques that can be used to estimate the economic impact of stadiums, events, championships, and franchises on local economies. Utilizing data from National Collegiate Athletic Association championships, this paper highlights the potential problems that can be made if city and time effects are not handled and unit-roots are not accounted for. In addition, the paper describes the technique for estimating dynamic panel data and the advantages that come with these modeling techniques.

Suggested Citation

  • Robert Baumann & Victor Matheson, 2011. "Estimating economic impact using ex post econometric analysis: Cautionary tales," Working Papers 1103, College of the Holy Cross, Department of Economics.
    • Handle: RePEc:hcx:wpaper:1103
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    References listed on IDEAS

    as
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    7. 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.
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    9. 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.
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    14. Giovanni S. F. Bruno, 2005. "Estimation and inference in dynamic unbalanced panel-data models with a small number of individuals," Stata Journal, StataCorp LP, vol. 5(4), pages 473-500, December.
    15. 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.
    16. Robert A. Baade & Robert Baumann & Victor A. Matheson, 2008. "Selling the Game: Estimating the Economic Impact of Professional Sports through Taxable Sales," Southern Economic Journal, John Wiley & Sons, vol. 74(3), pages 794-810, January.
    17. Robert Baade & Victor Matheson, 2004. "The Quest for the Cup: Assessing the Economic Impact of the World Cup," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 343-354.
    18. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    19. Maurice J.G. Bun & Jan F. Kiviet, 2001. "The Accuracy of Inference in Small Samples of Dynamic Panel Data Models," Tinbergen Institute Discussion Papers 01-006/4, Tinbergen Institute.
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    24. Hagn, Florian & Maennig, Wolfgang, 2008. "Employment effects of the Football World Cup 1974 in Germany," Labour Economics, Elsevier, vol. 15(5), pages 1062-1075, October.
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    Cited by:

    1. Kent R. Grote & Victor A. Matheson, 2014. "The Impact of State Lotteries and Casinos on State Bankruptcy Filings," Growth and Change, Wiley Blackwell, vol. 45(1), pages 121-135, March.
    2. Kent Grote & Victor Matheson, 2013. "Should Gambling Markets be Privatized? An Examination of State Lotteries in the United States," Working Papers 1303, College of the Holy Cross, Department of Economics.
    3. Kent R. Grote & Victor A. Matheson, 2017. "Should gambling markets be privatized? An examination of state lotteries in the United States," Chapters, in: Plácido Rodríguez & Brad R. Humphreys & Robert Simmons (ed.), The Economics of Sports Betting, chapter 2, pages 21-37, Edward Elgar Publishing.
    4. Andrej Srakar & Marilena Vecco, 2017. "Ex-ante versus ex-post: comparison of the effects of the European Capital of Culture Maribor 2012 on tourism and employment," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 41(2), pages 197-214, May.

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    More about this item

    Keywords

    College sports; impact analysis; econometrics;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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