IDEAS home Printed from https://ideas.repec.org/p/hcx/wpaper/0507.html
   My bibliography  Save this paper

Striking Out? The Economic Impact of Major League Baseball Work Stoppages on Host Communities

Author

Listed:
  • Victor Matheson

    (Department of Economics, College of the Holy Cross)

  • Robert Baade

    (Department of Economics and Business, Lake Forest College)

Abstract

Major League Baseball teams have used the lure of economic riches as an incentive for cities to construct new stadiums at considerable public expense. Estimates of the economic impact of a MLB on host communities have typically been in the vicinity of $300 million. Our analysis suggest these numbers are wildly inflated. Using the baseball strikes of 1981, 1994, and 1995 as test cases, we find the net economic impact for a MLB team on a host city of $16.2 million under one model and $132.3 million under a second model.

Suggested Citation

  • 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.
    • Handle: RePEc:hcx:wpaper:0507
    as

    Download full text from publisher

    File URL: https://hcapps.holycross.edu/hcs/RePEc/hcx/HC0507-Matheson-Baade_Strikes.pdf
    File Function: Original version presented to Williams College Economics Department in September 2002.
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Robert Baade & Victor Matheson, 1999. "An assessment of the economic impact of the american football championship, the Superbowl, on host communities," IASE Conference Papers 9903, International Association of Sports Economists.
    4. Robert A. Baade & Victor A. Matheson, 2001. "Home Run or Wild Pitch?," Journal of Sports Economics, , vol. 2(4), pages 307-327, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Philip K. Porter & Daniel M. Chin, 2012. "Economic Impact of Sports Events," Chapters, in: Wolfgang Maennig & Andrew Zimbalist (ed.), International Handbook on the Economics of Mega Sporting Events, chapter 15, Edward Elgar Publishing.
    3. Victor Matheson & Kent Grote, 2007. "Gamblers' Love for Variety and Substitution among Lotto Games," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 1(2), pages 85-99, June.
    4. 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.
    5. Nola Agha, 2013. "The Economic Impact of Stadiums and Teams," Journal of Sports Economics, , vol. 14(3), pages 227-252, June.
    6. Robert Baade & Robert Baumann & Victor Matheson, 2006. "The Economic Consequences of Professional Sports Strikes and Lockouts: Revisited," Working Papers 0604, College of the Holy Cross, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Victor Matheson & Robert Baade, 2005. "A Fall Classic? Assessing the Economic Impact of the World Series," Working Papers 0501, College of the Holy Cross, Department of Economics.
    2. Dennis Coates & Brad R. Humphreys, 2008. "Do Economists Reach a Conclusion on Subsidies for Sports Franchises, Stadiums, and Mega-Events?," Econ Journal Watch, Econ Journal Watch, vol. 5(3), pages 294-315, September.
    3. Florian Hagn & Wolfgang Maennig, 2007. "Labour Market Effects of the 2006 Soccer World Cup in Germany," Working Papers 008, Chair for Economic Policy, University of Hamburg.
    4. 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.
    5. Robert Baade & Robert Baumann & Victor Matheson, 2006. "The Economic Consequences of Professional Sports Strikes and Lockouts: Revisited," Working Papers 0609, International Association of Sports Economists;North American Association of Sports Economists.
    6. Robert Baade & Robert Baumann & Victor Matheson, 2011. "Big Men on Campus: Estimating the Economic Impact of College Sports on Local Economies," Regional Studies, Taylor & Francis Journals, vol. 45(3), pages 371-380.
    7. 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.
    8. Victor Matheson & Kent Grote, 2007. "Gamblers' Love for Variety and Substitution among Lotto Games," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 1(2), pages 85-99, June.
    9. 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.
    10. Victor A. Matheson, 2005. "Contrary Evidence on the Economic Effect of the Super Bowl on the Victorious City," Journal of Sports Economics, , vol. 6(4), pages 420-428, November.
    11. Brachert, Matthias, 2018. "The regional effects of professional sports franchises: Causal evidence from four European football leagues," IWH Discussion Papers 10/2018, Halle Institute for Economic Research (IWH).
    12. Dennis Coates & Victor Matheson, 2011. "Mega-events and housing costs: raising the rent while raising the roof?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(1), pages 119-137, February.
    13. Robert A. Baade & Robert W. Baumann & Victor A. Matheson, 2008. "Assessing the Economic Impact of College Football Games on Local Economies," Journal of Sports Economics, , vol. 9(6), pages 628-643, December.
    14. Dolan, Paul & Kavetsos, Georgios & Krekel, Christian & Mavridis, Dimitris & Metcalfe, Robert & Senik, Claudia & Szymanski, Stefan & Ziebarth, Nicolas R., 2019. "Quantifying the intangible impact of the Olympics using subjective well-being data," Journal of Public Economics, Elsevier, vol. 177(C), pages 1-1.
    15. Peter A. Groothuis & Bruce K. Johnson & John C. Whitehead, 2004. "Public Funding of Professional Sports Stadiums: Public Choice or Civic Pride?," Eastern Economic Journal, Eastern Economic Association, vol. 30(4), pages 515-526, Fall.
    16. Xia Feng & Brad R. Humphreys, 2008. "Assessing the Economic Impact of Sports Facilities on Residential Property Values: A Spatial Hedonic Approach," Working Papers 0812, International Association of Sports Economists;North American Association of Sports Economists.
    17. Jean-François Bourg & Jean-Jacques Gouguet, 2010. "The Political Economy of Professional Sport," Books, Edward Elgar Publishing, number 13177.
    18. Hakan Berument & Onur Ince & Eray Yucel, 2006. "Success in soccer and economic performance: Evidence from beŞİktaŞ-Turkey," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 53(2), pages 260-274, June.
    19. Dolan, Paul & Kavetsos, Georgios & Krekel, Christian & Mavridis, Dimitris & Metcalfe, Robert & Senik, Claudia & Szymanski, Stefan & Ziebarth, Nicolas R., 2016. "The host with the most? The effects of the Olympic Games on happiness," LSE Research Online Documents on Economics 67677, London School of Economics and Political Science, LSE Library.
    20. Vörös, Tünde, 2017. "Költség-haszon elemzési keretrendszer sportberuházások társadalmi-gazdasági értékeléséhez [An economic framework for cost-benefit analysis of sports facilities]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 394-420.

    More about this item

    Keywords

    impact analysis; sports; baseball; strikes; sports economics;
    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

    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:hcx:wpaper:0507. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Victor Matheson (email available below). General contact details of provider: https://edirc.repec.org/data/deholus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.