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The growth effects of sport franchises, stadia, and arenas
Author(s) -
Coates Dennis,
Humphreys Brad R.
Publication year - 1999
Publication title -
journal of policy analysis and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.898
H-Index - 84
eISSN - 1520-6688
pISSN - 0276-8739
DOI - 10.1002/(sici)1520-6688(199923)18:4<601::aid-pam4>3.0.co;2-a
Subject(s) - metropolitan area , football , basketball , per capita , per capita income , franchise , personal income , empirical evidence , demographic economics , professional sport , economics , league , advertising , business , marketing , economic growth , political science , geography , sociology , demography , law , physics , population , philosophy , archaeology , epistemology , astronomy
This paper investigates the relationship between professional sports franchises and venues and real per capita personal income in 37 standard metropolitan statistical areas in the United States over the period 1969 to 1994. Our empirical framework accounts for the entry and departure of professional football, basketball, and baseball franchises; the construction of arenas and stadia; and other sports related factors over this time period. In contrast to other existing studies, we find evidence that some professional sports franchises reduce the level of per capita personal income in metropolitan areas and have no effect on the growth in per capita income, casting doubt on the ability of a new sports franchise or facility to spur economic growth. We also find evidence that results obtained from estimating reduced‐form relationships, a common practice in the literature, are not robust to alternative reduced‐form specifications. © 1999 by the Association for Public Policy Analysis and Management.