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Sports facilities, agglomeration, and public subsidies

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  • Humphreys, Brad R.
  • Zhou, Li

Abstract

We develop a monopolistic competition model of urban service consumption and production that includes spatial structure and property values. The model shows that the introduction of a new professional sports facility and team generates agglomeration effects that change the mix of services and property values, and increases local welfare, part of which is transferred to the team as subsidies for the construction of the facility. The distributional consequences of the new facility and the implications of property tax based financing for the subsidy are analyzed.

Suggested Citation

  • Humphreys, Brad R. & Zhou, Li, 2015. "Sports facilities, agglomeration, and public subsidies," Regional Science and Urban Economics, Elsevier, vol. 54(C), pages 60-73.
    • Handle: RePEc:eee:regeco:v:54:y:2015:i:c:p:60-73
    DOI: 10.1016/j.regsciurbeco.2015.07.004
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    Citations

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    Cited by:

    1. 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.
    2. Brad Humphreys & Josh Matti, 2018. "The Spatial Distribution of Urban Consumer Service Firms: Evidence from Yelp Reviews," Working Papers 18-03, Department of Economics, West Virginia University.
    3. 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.
    4. Brad R. Humphreys & Hyunwoong Pyun, 2018. "Professional sporting events and traffic: Evidence from U.S. cities," Journal of Regional Science, Wiley Blackwell, vol. 58(5), pages 869-886, November.
    5. 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.
    6. 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.
    7. Ana Opris & Tomislav Kandzija, 2020. "Public Facilities Assessment Methodology," Postmodern Openings, Editura Lumen, Department of Economics, vol. 11(4), pages 64-78, December.
    8. Duane W. Rockerbie & Stephen T. Easton, 2019. "Of Bricks and Bats: New Stadiums, Talent Supply, and Team Performance in Major League Baseball," Journal of Sports Economics, , vol. 20(1), pages 3-24, January.
    9. 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.
    10. 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.
    11. 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.
    12. Imran Arif & Adam Hoffer & Brad Humphreys & Matthew Style, 2022. "New sports facilities do not drive migration between US cities," Economics of Governance, Springer, vol. 23(3), pages 195-217, December.
    13. Minuk Kang & Youngjik Lee, 2022. "The Gap in Community Sports: Utilization of Sports Facilities in South Korea," IJERPH, MDPI, vol. 19(8), pages 1-11, April.
    14. 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.
    15. 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.

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    More about this item

    Keywords

    Agglomeration effects; Sports facilities; Subsidies;
    All these keywords.

    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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