IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/48016.html
   My bibliography  Save this paper

When can economic impact be positive? Nine conditions that explain why smaller sports can have bigger impacts

Author

Listed:
  • Agha, Nola
  • Rascher, Daniel

Abstract

This 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.

Suggested Citation

  • Agha, Nola & Rascher, Daniel, 2013. "When can economic impact be positive? Nine conditions that explain why smaller sports can have bigger impacts," MPRA Paper 48016, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:48016
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/48016/1/MPRA_paper_48016.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    2. 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, Southern Economic Association, vol. 74(3), pages 794-810, January.
    3. Nola Agha & Dennis Coates, 2015. "A Compensating Differential Approach To Valuing The Social Benefit Of Minor League Baseball," Contemporary Economic Policy, Western Economic Association International, vol. 33(2), pages 285-299, April.
    4. 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.
    5. 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.
    6. Robert Baade & Victor Matheson, 2000. "Bidding for the Olympics: Fools Gold?," IASE Conference Papers 0007, International Association of Sports Economists.
    7. Seth R. Gitter & Thomas A. Rhoads, 2014. "Stadium Construction And Minor League Baseball Attendance," Contemporary Economic Policy, Western Economic Association International, vol. 32(1), pages 144-154, January.
    8. Seth R. Gitter & Thomas A. Rhoads, 2010. "Determinants of Minor League Baseball Attendance," Journal of Sports Economics, , vol. 11(6), pages 614-628, December.
    9. Dennis Coates & Brad R. Humphreys, 2001. "The Economic Consequences of Professional Sports Strikes and Lockouts," Southern Economic Journal, Southern Economic Association, vol. 67(3), pages 737-747, January.
    10. Nola Agha, 2013. "The Economic Impact of Stadiums and Teams," Journal of Sports Economics, , vol. 14(3), pages 227-252, June.
    11. Dennis Coates & Craig A. Depken,, 2011. "Mega-Events: Is Baylor Football to Waco What the Super Bowl is to Houston?," Journal of Sports Economics, , vol. 12(6), pages 599-620, December.
    12. John J. Siegfried & Andrew Zimbalist, 2000. "The Economics of Sports Facilities and Their Communities," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 95-114, Summer.
    13. Jason Winfree & Jill McCluskey & Ron Mittelhammer & Rodney Fort, 2004. "Location and attendance in major league baseball," Applied Economics, Taylor & Francis Journals, vol. 36(19), pages 2117-2124.
    14. Steven Cobb & Douglas J. Olberding, 2007. "The Importance of Import Substitution in Marathon Economic Impact Analysis," International Journal of Sport Finance, Fitness Information Technology, vol. 2(2), pages 108-118, May.
    15. Victor Matheson & Robert Baade, 2005. "Striking Out? The Economic Impact of Major League Baseball Work Stoppages on Host Communities," Working Papers 0507, College of the Holy Cross, Department of Economics.
    16. Robert Baade & Robert Baumann & Victor Matheson, 2005. "Selling the Big Game: Estimating the Economic Impact of Mega-Events through Taxable Sales," Working Papers 0510, College of the Holy Cross, Department of Economics.
    17. Coates, Dennis & Humphreys, Brad R., 2003. "The effect of professional sports on earnings and employment in the services and retail sectors in US cities," Regional Science and Urban Economics, Elsevier, vol. 33(2), pages 175-198, March.
    18. Dennis Coates & Craig A Depken, 2009. "The Impact of College Football Games on Local Sales Tax Revenue: Evidence from Four Cities in Texas," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 35(4), pages 531-547.
    19. Victor Matheson, 2004. "Is Smaller Better? A Comment on "Comparative Economic Impact Analyses" by Michael Mondello and Patrick Rishe," Working Papers 0407, College of the Holy Cross, Department of Economics.
    20. Robert A. Baade & Victor A. Matheson, 2001. "Home Run or Wild Pitch?," Journal of Sports Economics, , vol. 2(4), pages 307-327, November.
    21. Dennis Coates, 2007. "Stadiums And Arenas: Economic Development Or Economic Redistribution?," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 565-577, October.
    22. T. Johnson, 1998. "Minor League Baseball: Risks And Potential Benefits For Communities Large And Small," Review of Policy Research, Policy Studies Organization, vol. 15(1), pages 45-55, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    economic impact; minor league baseball; MLB; stadiums; efficiency;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:48016. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.