IDEAS home Printed from https://ideas.repec.org/a/bla/rgscpp/v13y2021i5p1687-1701.html
   My bibliography  Save this article

Sports facilities and the local property tax base in recovery

Author

Listed:
  • Geoffrey Propheter

Abstract

This study considers if major league sports facilities help the property tax base in their vicinity recover from recession. The Great Recession is treated as an exogenous shock to the property tax base, and proximity to three facilities in Los Angeles County, California is used to predict the speed at which nearby properties’ taxable assessed value recovers. California is a useful context because state law provides a consistent and uncontroversial way to measure property tax base recovery. Using parcel‐level data from 2006 through 2019 for properties within 3 miles of the Staples Center, Dodger Stadium, and Dignity Health Sports Park, only proximity to Dodger Stadium impacts recovery speed. The results indicate that an average property a mile closer to the stadium recovers in 87% of the time an otherwise similar property a mile further away does, a finding that is robust to placebo. The study’s implications are discussed.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:rgscpp:v:13:y:2021:i:5:p:1687-1701
    DOI: 10.1111/rsp3.12444
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rsp3.12444
    Download Restriction: no
    File URL: https://libkey.io/10.1111/rsp3.12444?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gabriel M. Ahlfeldt & Georgios Kavetsos, 2014. "Form or function?: the effect of new sports stadia on property prices in London," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 177(1), pages 169-190, January.
    2. Victor Matheson, 2019. "Is There A Case For Subsidizing Sports Stadiums?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 38(1), pages 271-277, January.
    3. Carlino, Gerald & Coulson, N. Edward, 2004. "Compensating differentials and the social benefits of the NFL," Journal of Urban Economics, Elsevier, vol. 56(1), pages 25-50, July.
    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. Yulia Chikish & Brad R. Humphreys & Crocker Liu & Adam Nowak, 2019. "Sports‐Led Tourism, Spatial Displacement, And Hotel Demand," Economic Inquiry, Western Economic Association International, vol. 57(4), pages 1859-1878, October.
    6. Kaitlyn Harger & Brad R. Humphreys & Amanda Ross, 2016. "Do New Sports Facilities Attract New Businesses?," Journal of Sports Economics, , vol. 17(5), pages 483-500, June.
    7. Dennis Coates & Brad Humphreys, 2011. "The effect of professional sports on the earnings of individuals: evidence from microeconomic data," Applied Economics, Taylor & Francis Journals, vol. 43(29), pages 4449-4459.
    8. Carolyn A. Dehring & Craig A. Depken & Michael R. Ward, 2007. "The Impact Of Stadium Announcements On Residential Property Values: Evidence From A Natural Experiment In Dallas‐Fort Worth," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 627-638, October.
    9. Fischel, William A., 2001. "Homevoters, Municipal Corporate Governance, and the Benefit View of the Property Tax," National Tax Journal, National Tax Association, vol. 54(n. 1), pages 157-74, March.
    10. Xia Feng & Brad Humphreys, 2018. "Assessing the Economic Impact of Sports Facilities on Residential Property Values," Journal of Sports Economics, , vol. 19(2), pages 188-210, February.
    11. Justin Ross & Wenli Yan & Craig Johnson, 2015. "The Public Financing Of America'S Largest Cities: A Study Of City Financial Records In The Wake Of The Great Recession," Journal of Regional Science, Wiley Blackwell, vol. 55(1), pages 113-138, January.
    12. Brad R. Humphreys, 2019. "Should The Construction Of New Professional Sports Facilities Be Subsidized?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 38(1), pages 264-270, January.
    13. Humphreys, Brad R. & Nowak, Adam, 2017. "Professional sports facilities, teams and property values: Evidence from NBA team departures," Regional Science and Urban Economics, Elsevier, vol. 66(C), pages 39-51.
    14. Matthew Cypher & J. Andrew Hansz, 2003. "Does assessed value influence market value judgments?," Journal of Property Research, Taylor & Francis Journals, vol. 20(4), pages 305-318, December.
    15. Charles C. Tu, 2005. "How Does a New Sports Stadium Affect Housing Values? The Case of FedEx Field," Land Economics, University of Wisconsin Press, vol. 81(3).
    16. Geoffrey Propheter, 2020. "Do urban sports facilities have unique social costs? An analysis of event-related congestion on police response time," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 24(2), pages 271-281, April.
    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. 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.
    19. Gabriel Ahlfeldt & Wolfgang Maennig, 2010. "Stadium Architecture and Urban Development from the Perspective of Urban Economics," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 34(3), pages 629-646, September.
    20. 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.
    21. Fischel, William A., 2001. "Homevoters, Municipal Corporate Governance, and the Benefit View of the Property Tax," National Tax Journal, National Tax Association;National Tax Journal, vol. 54(1), pages 157-174, March.
    22. Brandli Stitzel & Cynthia L. Rogers, 2019. "NBA sweet spots: Distance‐based impacts on establishment‐level sales," Growth and Change, Wiley Blackwell, vol. 50(1), pages 335-351, March.
    23. Timothy R. Hodge & Gary Sands & Mark Skidmore, 2015. "Assessment Growth Limits and Mobility: Evidence From Home Sale Data in Detroit, Michigan," National Tax Journal, National Tax Association;National Tax Journal, vol. 68(3), pages 573-600, September.
    24. Humphreys, Brad R. & Zhou, Li, 2015. "Sports facilities, agglomeration, and public subsidies," Regional Science and Urban Economics, Elsevier, vol. 54(C), pages 60-73.
    25. Pace, R. Kelley & Zhu, Shuang, 2019. "The influence of house, seller, and locational factors on the probability of sale," Journal of Housing Economics, Elsevier, vol. 43(C), pages 72-82.
    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. Brad R. Humphreys & Geoffrey Propheter, "undated". "NFL Franchise Departures and Nearby Home Prices," Working Papers 24-05, Department of Economics, West Virginia University.

    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. 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.
    2. Zachary T. Keeler & Heather M. Stephens & Brad R. Humphreys, 2021. "The Amenity Value of Sports Facilities: Evidence From the Staples Center in Los Angeles," Journal of Sports Economics, , vol. 22(7), pages 799-822, October.
    3. Geoffrey Propheter, 2023. "Sports Facilities as a Housing Amenity: Do Prices Follow Facilities?," Journal of Sports Economics, , vol. 24(4), pages 443-474, May.
    4. 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.
    5. Brad R. Humphreys, 2023. "Professional Sports Subsidies and Urban Congestion Externalities: Assessing 50 Years of Failed Urban Economic Development Policies," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 49(4), pages 457-474, October.
    6. John Charles Bradbury, 2022. "Does hosting a professional sports team benefit the local community? Evidence from property assessments," Economics of Governance, Springer, vol. 23(3), pages 219-252, December.
    7. 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.
    8. Geoffrey Propheter, 2019. "Estimating the Effect of Sports Facilities on Local Area Commercial Rents: Evidence From Brooklyn’s Barclays Center," Journal of Sports Economics, , vol. 20(1), pages 91-114, January.
    9. 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.
    10. 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).
    11. Sepulveda, Cristian F., 2023. "Cost–Benefit Analysis of an “Average” Professional Sports Team or Stadium in the United States," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 14(3), pages 451-477, October.
    12. Gabriel Ahlfeldt & Wolfgang Maennig, 2010. "Stadium Architecture and Urban Development from the Perspective of Urban Economics," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 34(3), pages 629-646, September.
    13. Aakrit Joshi & Brady P. Horn & Robert P. Berrens, 2020. "Major league soccer expansion and property values: do sports franchises generate amenities or disamenities?," Applied Economics, Taylor & Francis Journals, vol. 52(44), pages 4881-4899, September.
    14. Tsai, I-Chun, 2024. "A wise investment by urban governments: Evidence from intelligent sports facilities," Journal of Asian Economics, Elsevier, vol. 92(C).
    15. Chikish, Yulia & Humphreys, Brad R. & Nowak, Adam, 2019. "Sports Arenas, Teams and Property Values: Temporary and Permanent Shocks to Local Amenity Flows," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 49(1), February.
    16. Brad R. Humphreys & Adam Nowak, 2015. "Professional Sports Facilities, Teams and Property Values: Evidence from Seattle's Key Arena," Working Papers 15-06, Department of Economics, West Virginia University.
    17. Gabriel Ahlfeldt & Wolfgang Maennig & Michaela Ölschläger, 2009. "Lifestyles and Preferences for (Public) Goods: Professional Football in Munich," Working Papers 030, Chair for Economic Policy, University of Hamburg.
    18. 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.
    19. Gabriel M. Ahlfeldt & Georgios Kavetsos, 2014. "Form or function?: the effect of new sports stadia on property prices in London," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 177(1), pages 169-190, January.
    20. Gabriel M. AHLFELDT & Arne FEDDERSEN, 2010. "Geography Of A Sports Metropolis," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 31, pages 11-36.

    More about this item

    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:bla:rgscpp:v:13:y:2021:i:5:p:1687-1701. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1757-7802 .

    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.