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Economic Development Effects of Major and Minor League Teams and Stadiums

Author

Listed:
  • Nola Agha
  • Daniel Rascher

Abstract

Professional teams and leagues claim new stadiums lead to economic development. To test this, we utilize data from the Census Bureau on net establishment and employment changes across 871 Metropolitan and Micropolitan Statistical Areas from 2004 to 2012. Difference-in-differences and panel data techniques allow for a cross-sectional and time series comparison for both teams and new stadia in both professional and development leagues. Nearly all results from hundreds of models are insignificantly different from zero. Results from between- and random-effects models suggest that teams move into markets that already have higher employment and establishment growth. (JEL R58, H71, L83, Z28)

Suggested Citation

  • 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.
    • Handle: RePEc:sae:jospec:v:22:y:2021:i:3:p:274-294
    DOI: 10.1177/1527002520975847
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    References listed on IDEAS

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    Cited by:

    1. Tsai, I-Chun, 2024. "A wise investment by urban governments: Evidence from intelligent sports facilities," Journal of Asian Economics, Elsevier, vol. 92(C).
    2. David Castells-Quintana & Roberto Gasquez, 2024. "Club football and economic dynamism: a regional analysis for Europe," Working Papers wpdea2402, Department of Applied Economics at Universitat Autonoma of Barcelona.
    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, 2021. "Sports facilities and the local property tax base in recovery," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(5), pages 1687-1701, October.
    5. Jakar, Gidon S. & Carr, Jeff & Rosentraub, Mark S., 2022. "A sport-anchored development district and densification: A comparative mixed effects analysis," Land Use Policy, Elsevier, vol. 121(C).

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    More about this item

    Keywords

    redevelopment; difference-in-differences; panel data; economic development; sports team entry; stadium construction;
    All these keywords.

    JEL classification:

    • 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
    • Z28 - Other Special Topics - - Sports Economics - - - Policy

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