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Employment Effects of the Football World Cup 1974 in Germany
Abstract
This study demonstrates that the Football World Cup 1974 in Germany was not able to generate any medium to long-term employment effects that were significantly different from zero. It is the first work to examine the employment effects of Football World Cup tournaments. It is also the first work to undertake a multivariate analysis of the employment effects of a major sporting event outside of the USA. In addition, this study does not arbitrarily determine the time period for the potential positive effects of a major sporting event but instead examines several alternative periods. Furthermore, the study tests for method sensitivity by analysing the data set in parallel with the approaches used in the studies of sporting events in the USA as well as in a fourth modifying estimation approach. In contrast to the conclusions reached in comparable studies, the results are not regarded as a clear refutation of the positive effects of major sporting events.
... These benefits, though difficult to quantify in monetary terms, are of great importance to the spiritual life and sustainable development of society. Maennig and Porsche (2008) [13] argue that the "feel-good factor" from hosting a mega-sport event can contribute to enhancing the quality of life and stimulating domestic consumption. However, quantifying and assessing these emotional impacts remains a significant challenge in sports economics research. ...
... It is estimated that each event can create tens of thousands to hundreds of thousands of direct and indirect jobs, especially in related sectors such as construction, tourism, hospitality, restaurants, and retail. For example, the 2006 World Cup helped Germany's economy create about 50,000 new jobs, mainly in the service and industrial sectors (Hagn & Maennig, 2008) [13] . Meanwhile, the 2018 World Cup was estimated to have created around 220,000 jobs in Russia, equivalent to 0.3% of the country's total employment (Müller, 2019) [22] . ...
... It is estimated that each event can create tens of thousands to hundreds of thousands of direct and indirect jobs, especially in related sectors such as construction, tourism, hospitality, restaurants, and retail. For example, the 2006 World Cup helped Germany's economy create about 50,000 new jobs, mainly in the service and industrial sectors (Hagn & Maennig, 2008) [13] . Meanwhile, the 2018 World Cup was estimated to have created around 220,000 jobs in Russia, equivalent to 0.3% of the country's total employment (Müller, 2019) [22] . ...
... They argued that there is no consistent positive and statistically significant gain associated with hosting a mega sporting event. In the same vein, Hagn and Maennig [3] state that the 1974 FIFA World Cup in Germany did not generate the expected positive employment effects in the matches' host cities. Gratton and Preuss [4] found no scientific evidence that mega sporting events have any positive economic effects. Some researchers, however, have found some positive economic effects for the host countries of mega sporting events but the magnitudes of the effect are rather small in these studies (see Sterken [5]; Tien et al. [6]). ...
... To date, this line of research on the effects of hosting mega sporting events has produced mixed findings. Baade and Matheson (2004) find that several mega sporting event host cities suffer financial losses resulting from their involvement and Hagn and Maennig (2008) argue that hosting such events does not generate the expected employment effects. In contrast, Hotchkiss et al., (2003) suggest that hosting a mega sporting event positively affects employment. ...
We examine the economic effects of the Summer and Winter Olympic Games and the FIFA World Cup on the economies of host countries. We found that in the short run, hosting the Olympic Games has a significant positive announcement effect on the host country’s equity market. Our results also revealed a positive effect on the stock market in non-G7 countries hosting a mega sporting event and an insignificant effect in G7 countries hosting such events, indicating that hosting a mega sporting event can provide additional momentum for developing or emerging economies. We did find, however, that while the countries hosting the Summer Olympic Games initially experienced significant positive GDP growth, the effect rapidly diminished after the event. Our results suggest that hosting a mega sporting event such as the Summer Olympic Games is most likely to result in a short-term positive economic momentum, however it hinders sustainable growth for the host countries’ economies.
... He concluded that the growth of these countries was significantly lower during World Cup years. 2 Sterken (2006) found that World Cups have a positive effect but that this effect is limited. Hagn and Maennig (2008) showed that the 1974 World Cup, which was held in Germany, did not generate significant short-or long-term employment effects in that country. Baade and Matheson (2004) showed that, as a result of the 1994 World Cup in the USA, nine of the 13 host cities suffered a reduction in growth. ...
... The researchers were able to reject, at a 5% significance level, any promoters' claims of an economic impact of more than $300 million from the game. Hagn and Maennig (2008) concluded that a hypothesis that the 1974 World Cup in Germany caused an employment increase of 40,923 jobs in the average employment 12/23 levels in the host cities in the period between 1974 and 1988 could not be rejected. Note that non-testing the zero-hypothesis evades from the current "Popper" world of science and is thus unusual. ...
... Sports events, such as major football tournaments, basketball competitions or the Olympic Games, represent large injections of money into the hosting national economies even before the events start (Dwyer, Forsyth, and Spurr 2005;Matheson 2006). Some authors claim that these events seem to have positive effects on employment and wages (Lozano 2011;Hagn and Maennig 2008), tourism (Golovnina 2002), infrastructure investment (Baade and Matheson 2001) and national well-being (Kavetsos and Szymanski 2010;Kahn 2007). Some literature alternatively finds effects can be negative or nonexistent in the hosting economies (Baade and Dye 1990;Coates and Humphreys 2003). ...
... The original data set comprises 6 years of data, from 2007 to 2012. There were no major international football championships in 2007, 2009. In 2008, there were European Football Championships, the Spanish team winning both; the English team did not participate in 2008 and was eliminated in 2012 in the quarter finals, the third week of the tournament (out of 4 weeks). In 2010, there was a Football World Cup Championship in which the Spanish team won; England was eliminated in the kn ...
The allocation of time between leisure activities and work has been extensively analysed in academic literature. However, leisure time is limited and there may not be sufficient time to enjoy all the leisure activities desired. Hence, this article considers the allocation of time between substitute leisure activities. International football tournaments provide an opportunity to consider consumers’ preferences for watching football and films in a quasi-natural experimental setting. A trade-off between these leisure activities is identified using a difference-in-difference methodology. Using an original, four-country data set, a large and robust negative effect of mega sports events on cinema admissions is identified.
... Similar forms of integrated traonsportation systems have been implemented in Cape Town, Durban and Port Elizabeth. employment), little real evidence of overall economic growth, long-term employment or increased standards of living have been reported (Kim and Alaistair M. Morrison, 2003;Horne, 2004;Kim et al., 2004;Hagn and Maennig, 2007;Maennig and du Plessis, 2007). ...
... Results in fact have led to either a neutral or negative result on economic performance when monitoring year-on-year activity (such as GDP growth rates, employment, trade) and both local and international circumstances (Hagn and Maennig, 2007). The over one hundred strikes by public workers and resident protests all over South Africa between January and June 2010 over failed promises made to them by local councillors when selling the development of football stadiums at the expense of public amenities and service delivery, further seem to dampen the developmental impact of the tournament on the poorer strata of society. ...
... In the case of binary treatment indicators, difference-in-difference (DiD) estimation has become a standard approach for causal inference with panel data (Lechner, 2011). Besides its general attractiveness as a flexible and robust tool for regional policy analysis, DiD estimation has also been applied to tourism analyses (Baumann & Matheson, 2018;Falk & Vieru, 2021) and assessment of the economic effects of large-scale sporting events (Billings & Holladay, 2012;Hagn & Maennig, 2008, 2009Hayduk & Rewilak, 2022;Tien et al., 2011). For empirical applications with multiple treated units, DiD estimation can be seen as favorable compared with alternative identification strategies, such as the synthetic control method, which is ideally applied to empirical investigations with one or very few treated units (Bronzini et al., 2020 for the 2000 Great Jubilee in Rome). ...
The Tour de France (TdF) is one of the biggest and most recognized annual sporting events in the world. Cities and regions participate actively by hosting a stage start and/or finish, but it is unclear if there are place-based benefits from such local engagements. We estimate the direct and spatially indirect immediate regional benefits of hosting a TdF stage using monthly tourism data for French départements during 2011-2020. Our static and dynamic panel regressions indicate that hosting a TdF stage leads to significant increases in tourist arrivals and nights spent vis-à-vis similar départements not hosting a stage at the same time. Results are found to be robust when we run placebo tests, matching-based estimation to deal with regional heterogeneity and associated treatment endogeneity as well as spatially augmented estimations to account for interregional spillovers to départements not directly hosting a stage start/finish, for example, to those located along the route of a TdF stage. We use the obtained treatment estimates to discuss the regional economic impact of the TdF and their ramifications for tourism-based regional development and event management.
... Various studies have assessed the economic impact of sports mega events, such as the Olympics and the FIFA World Cup [17][18][19][20][21]. The host city population pays costs exceeding the positive impact value of increased happiness [22]. ...
The slogans of the 2020 Tokyo Olympics were “symbol of resilience from the Great East Japan Earthquake” and “Compact Olympics”. The Olympics were also expected to demonstrate “gender equality” and to enhance sustainability in modern society. However, in practice, the cost of the Tokyo Olympics 2020 was far greater than estimated. The slogan was changed to “symbol of overcoming COVID-19” although in reality, infection spread dramatically during the games. Overall, the 2020 Tokyo Olympics did not turn out as expected or meet the expectations of the populace. Using individual-level data, we tested how and to what extent Japanese proponents of a sustainable society supported the compact Olympics announced in 2016. The key findings are: (1) most people support policies for environmental protection, gender equality, and disaster prevention and (2) they would have wished to reduce public expenditure for the 2020 Tokyo Olympics. Further examination with a questionnaire yielded similar results for the male but not for the female sample.
... 2. The multiple effects of football on crime: an examination of the existing literature A major sporting event can have a variety of impacts. In the case of football, studies have focused on the effects of a competition such as the FIFA World Cup on employment, tourism, sales, overnight stays (Matheson and Baade, 2004;Hagn and Maennig, 2008;Allmers and Maennig, 2009) and on psychological aspects, such as individual perceptions about economic prospects, both at a personal and economy-wide level (Dohmen et al., 2006;Su¨ssmuth et al., 2010). Additionally, there is evidence of the effect of football on illegal behaviours. ...
Given the recent increase observed in crime related to football matches, we determine the extent to which this private leisure activity is responsible for negative crime externalities. We conduct an Exploratory Spatial Data Analysis and spatial regressions at the census tract level drawing on data for the matches played by Football Club Barcelona and geocoded crime data for the city of Barcelona (Spain); focusing on thefts (mainly pick pocketing) and assaults (interpersonal violence or hooliganism). We find an increase in the number of thefts across the whole city but, especially, in those census tracts within a 700-m radius of the stadium. These results are confirmed by the low number of crimes committed during away matches in the census tracts around the stadium. A similar spatial pattern is found for assaults. Our results provide evidence of a displacement effect of violent supporters (hooligans) towards the stadium on football days. © The Author (2018). Published by Oxford University Press. All rights reserved. For Permissions, please email: [email protected]
... Moving to papers that perform ex-post analysis, Hagn and Maennig (2008) and Hagn and Maennig (2009) found insignificant or negative effects of World Cups on unemployment using, respectively, data for the events held in Germany in the years of 1974 and 2006. For the event held in the US, Baade and Matheson (2004), using data at the Metropolitan Statistical Area (MSA) level, found insignificant or negative effects of the World Cup on GDP growth. ...
... In general, the research finds, at best, modest impacts from hosting. Hagn and Maennig (2008) argue that the 1974 FIFA World Cup in Germany "was not able to generate any medium to long-term employment effects that were significantly different from zero". Baade and Matheson (2004) estimate that host cities of the 1994 FIFA World Cup in the United States experienced a cumulative loss of at least $5.5 billion. ...
Mega-sporting events such as the Fédération Internationale de Football Association (FIFA) World Cup are expensive affairs. Host countries often justify the spending required to stage these events by predicting that mega-events will draw large numbers of tourists. This paper analyzes monthly foreign tourist arrivals into Brazil between 2003 and 2015 and finds that the 2014 FIFA World Cup increased foreign tourism by roughly 1 million visitors. This number far exceeded expectations, but we show that roughly a quarter of this increase in foreign tourism was caused by the fortuitous advancement of Argentina's national team, and potential hosts should not count on the event to consistently produce out-sized tourism figures. We conclude that on-field results can greatly influence FIFA World Cup tourism. (JEL L83, F14)
... Taking into account the scale of this policy intervention, surprisingly little research has been conducted to analyze the overall effects on the economy or to explicitly investigate the effects of public infrastructure investments connected to the 2010 World Cup. 3 Most of this work has been done in advance of the tournament or only shortly thereafter, and merely confines to verbal evaluations and reporting descriptive evidence (Sport and Recreation South Africa, 2013;Human Sciences Research Council, 2011), from which the overall conclusion is that potential (positive) impacts were only short-lived. This skeptical view on the longerlasting effects for economic growth and development is, in general, shared in the literature on mega events ( Baade and Matheson, 2004;Hagn and Maennig, 2008;de Nooij et al., 2011). ...
This paper evaluates the economic impact of the $14 billion preparatory infrastructure investments for the 2010 FIFA World Cup in South Africa. We use satellite data on night light luminosity at municipality and electoral district level as a proxy for economic activity, applying synthetic control methods for estimation. For the average World Cup municipality, we find significantly positive, short-run effects before the tournament, corresponding to a reduction of unemployment by 1.3 percentage points. At the electoral district level, we reveal distinct effect heterogeneity, where especially investments in transport infrastructure are shown to have long-lasting, positive effects, particularly in more rural areas.
... In order to test the effects of these theoretical deficiencies, numerous researchers have followed Baade and Dye (1988), including Coates and Humphreys (1999;2002), Matheson (2002, 2004), Baade et al. (2008), Hagn and Maennig (2008), Jasmand and Maennig (2008) and Feddersen and Maennig (2010), to name just a few. These economists have performed ex post analyses of the performance of economic variables in local economies in the wake of new stadium construction, mega-events, and franchise relocation. ...
... Overall, this research presents mixed evidence on the economic effects of the Olympic Games. In fact, several studies on sports economics conclude that the economic impacts of the FIFA World Cup as well as of the Olympic Games are minimal (Baade & Matheson, 2004;Hagn & Maennig, 2008, 2009. ...
This paper aims to assess the long-term effects of the 1998 Nagano Winter Olympic Games on various economic and labor market outcomes in Nagano Prefecture. One-shot and large-size events, such as the Olympic Games, are expected to boost the local economy and create jobs, thus leading to lower unemployment. In addition, the tightening of the local labor market eventually raises wages. Using the synthetic control methodology, we build counterfactual dynamics of various economic and labor market outcomes for Nagano Prefecture, and then compare these outcomes with the actual data for these variables. This allows us to determine how the local economic and labor market outcomes in Nagano Prefecture would have been different had the 1998 Olympic Games not been held there.
... In several cases, as with the Olympics in Sydney and even in Barcelona, job creation has been rather temporary and focused on low-paid employment opportunities (Horne & Manzenreiter, 2006;Lenskyj, 2002). Hagn & Maennig (2008) clearly illustrate how the soccer World Cup in Germany in 1974 was unable to generate any positive employment effects in the medium to long-term. Additionally Lenskyj (2002) emphasised that the Sydney Olympics exacerbated the existing housing gap and that homelessness and housing problems intensified. ...
In 2014, Cape Town is celebrating its design in all its forms, having been voted the World Design Capital (WDC). The hopeful rhetoric of the city as ultimate holiday destination, African creative metropolis, prime global-events location or city of freedom indicates powerful cultural discourses at work. In this paper, I will give a series of insights into the links between colonial modernity, on the one hand, and the origins of contemporary discourses of urban design and heritage in Cape Town, on the other. I intend to discuss the function of official discourse concerning the design of the city as well as the sudden eruptions that disturb these constructs. I point to the recurrent patterns and moments in which design is made plain and unspoken. I will trace the genealogy of official or top-down design and heritage discourses as well as the moments or movements that are at odds with or embarrass this official discourse.
... Moreover, 9 out of thirteen host cities suffered lower growth after the World Cup compared to before. Using a similar approach, Hagn and Maennig (2008) could not find any evidence of statistically significant positive benefits to German regions (in the old Federal Republic) from hosting the 1974 World Cup, whether assessed by GDP growth, income growth or unemployment reductions. ...
This chapter examines the method by which host countries are selected by Fédération Internationale de Football Association (FIFA) for the rights to organize the World Cup finals, and also investigates the benefits to host countries from organizing this event. The benefits to soccer fans in a host country from new stadium infrastructure and other legacies of hosting the World Cup finals are explained. The chapter then pays attention to the players participating in the World Cup finals. FIFA operates two key restrictions on stadium development for World Cup finals. Recent appearances in World Cup finals matches do appear to have shop-window effects, both in raising player salaries paid by clubs and by helping players secure transitions to more highly ranked teams. The FIFA World Cup finals are, no doubt, here to stay as a vital component of the sporting calendar.
... The total negative effect was estimated to $9 billion. This study was confirmed on German data from 2006 by Hagn and Maennig (2008) who also found a significant lower output in the year of the tournament. Sterken (2006) found that there was a positive economic impact on growth by hosting the Olympics, but no sign of such when hosting the World Cup. ...
... The indicators that are monitored for congresses and other business gatherings held are the number of business gatherings held, number of conference rooms and seats used, number of business gatherings according to the types, the type of venues where the gatherings were held, number of business gatherings held according to the expert organizer, as well as the total number of days of duration of gatherings, number of domestic and foreign participants, and earnings from business gatherings inclusive of VAT (Croatian Bureau of Statistics, 2011). An insight into the literature can confirm the statistical monitoring of various indicators and impacts, most frequently of business events, i.e., congresses at world congress centers (lee, 2007;Pearlman, 2008;Weber & ladkin, 2005), or, on the other hand, of mega-sports events, such as the olympic Games and World Football Championships (Ahlert, 2007;Faulkner, Chalip, Spurr, & Brown, 2000;Hagn & Maennig, 2008;Swart & Bob, 2005). Compared to the mega-sports events and business events at the world congress centers, the impacts of smaller events of a regional or local character, most often remain outside the object of scientific and expert interest. ...
As the understanding of the importance of monitoring of social and environmental event impacts grows, together with the economic impacts, event management stakeholders face the challenge of greater responsibility in strategic decision making, as well as in achieving sustainable event results. The purpose of this article is to determine the attitudes of the local tourist organizations' managers in the County of Istria towards the importance of monitoring of the economic, social, and environmental impacts of events. The County of Istria is the most developed tourist region in Croatia. Events have only recently been recognized in Croatia as an interesting phenomenon, both in a scientific and a practical sense. For the needs of the research, the data were gathered directly from the managers of 27 tourist organizations, using the interview method. The research results indicate that art events, which are limited to the summer months and geographically directed to the coastal destinations, make up the most significant part in the event structure. Environmental and social events in tourist destinations have been identified as the most significant, followed by the economic impacts. Equally, the research revealed a lack of managerial skills in the event evaluation aspects.
... Most academic examinations of the direct economic impact of sports teams, stadiums, and events on observable economic variables such as employment (Baade and Matheson 2002;Hagn and Maennig 2008), personal income or personal income per capita (Coates and Humphreys 2002), taxable sales (Baade, Baumann and Matheson 2008) and tourist arrivals (Baumann, Matheson, and Muroi 2009) have found that spectator sports have little to no measurable effect on the economy. ...
We estimate the impact of sporting events and franchises on local crime rates using the technique developed in Arellano and Bond (2001). For events, we consider the presence of Major League Baseball, National Basketball Association, National Football League and National Hockey League franchises as well as whether a city held one of the respective championships, the Olympics, or World Cup matches. We find little to no evidence that sporting events or franchises are correlated with changes in either property or violent crime with two notable exceptions. The Olympics Games are associated with roughly a 10 per cent increase in property crimes while the Super Bowl is associated with a 2.5 per cent decrease in violent crime. On the whole, however, the presence of spectator sports does not seem to automatically carry with it any improvements in citywide criminal behaviour.
This paper uses OECD data to examine whether winning the men's FIFA World Cup boosts GDP growth, as claimed by analysts and media outlets concomitantly with every edition of this football competition. By implementing both an event‐study design and a synthetic difference‐in‐difference strategy, the analysis shows that winning the World Cup increases year‐over‐year GDP growth by at least 0.48 percentage points in the two subsequent quarters. This result seems primarily driven by enhanced export growth, which is consistent with a greater appeal enjoyed by national products and services on the global market after victory in a major sporting event.
The “Baade consensus,” i.e., the non-significance of staging major sporting or of the construction of new sports stadiums for employment, income, or tax revenues, was valid for some two or three decades. Some recent publications question the consensus. This contribution finds that these newer studies suffer from problematic modeling of the development trends that would have arisen without the event, from potential sample selection biases, and from potential variable selection biases. Furthermore, it is notable that most of the booster publications use highly aggregated data such as national GDP or national exports (often on a yearly basis), whereas the previous work from the Baade consensus used increasingly disaggregated datasets. Also, booster estimates imply multipliers which seem much too large compared to empirical results in other areas. The contribution also indicates that the studies on the effects of mega sports events may be a case of “retire statistical significance” as the power of the tests may be too low to uncover or exclude significant and economically plausible effects with a reasonable probability.
Unemployment is one of the most important issues in every country. Tourism industry is a dynamic sector which is labor augmented and can create jobs, increase consumption expenditures and offer employment opportunities. In the analysis of this work, the empirical literature on this issue is presented, which indicates that tourism can play a vital and beneficial role to increase employment. This paper uses meta-analysis techniques to investigate the effect of tourism on employment, and finds that the vast majority of the studies reveal a positive relationship. The mean effect of the 36 studies of the meta-sample, using Partial Correlations, is 0.129. This effect is similar to the regression results which is around 0.9, which is positive and statistically significant, clearly indicating that tourism is effective in the creation of jobs and offers employment opportunities. Moreover, evidence of selection bias in the literature in favor of studies which produce positive estimates is found, and once this bias is corrected the true effect is 0.85-0.97.
The 2020 Tokyo Olympics have been postponed due to the novel coronavirus (COVID-19) pandemic. The implications for industries related to the Olympics—tourism, hotels and restaurants, and others—are expected to be affected by reduced demand. Japanese workers in these industries were prepared to offer their hospitality to visitors from around the world. They would be benefited not only by an increase in income but also in offering visitors a taste of Tokyo’s great hospitality if the Olympics had been held in 2020. However, postponement of the sporting event is likely to have a significant impact on their happiness level. We independently collected individual-level panel data from March to April 2020. In the survey, the respondents were asked about their happiness levels by choosing from 11 categories: 1 (very unhappy) and 11 (very happy). They were also asked about expected income changes from 2020 to 2021. Based on this, we examined the effect of postponement on happiness level and expected income change. The sample was divided into sub-samples of areas including and excluding Tokyo. We found that the happiness level of workers in the tourism and restaurant sectors declined drastically after the announcement of the postponement. Only two weeks later, their happiness level did not alter from the pre-announcement level. This tendency was strongly observed in Tokyo and the surrounding prefectures, but not in other prefectures. However, workers engaged in the tourism and restaurant sectors did not predict a decrease in their income even after the postponement. Combined, these findings indicate that loss of extending hospitality, rather than reduction in income, temporarily reduces the happiness level of workers.
The 2020 Tokyo Olympics has been postponed due to the novel coronavirus (COVID-19) pandemic. The implications for industries related to the Olympics—tourism, hotels and restaurants, and others—are expected to be affected by reduced demand. Japanese workers in these industries were prepared to offer their hospitality to visitors from around the world. They would be satisfied from not only an increase in income but also in offering visitors a taste of Tokyo’s great hospitality if the Olympics had been held in 2020. However, postponement of the sporting event is likely to have a significant impact on their happiness level. We independently collected individual-level panel data from March to April 2020. Based on this, we found that the happiness level of workers in the tourism and restaurant sectors declined drastically after the announcement of the postponement. Only two weeks later, their happiness level did not alter from the pre-announcement level. This tendency was strongly observed in Tokyo and the surrounding prefectures, but not in other prefectures. However, workers engaged in the tourism and restaurant sectors did not predict a decrease in their income even after the postponement. Combined, these findings indicate that loss of extending hospitality, rather than reduction in income, temporarily reduces the happiness level of workers.
The paper reviews ex post studies on the economic and social effects of sports mega events. The aim of the article is to sum up the existing economic literature about sports mega events and to emphasize the importance of sports economics development. The main results are the classification of the material and non-material sports mega event's effects outlined in the economic papers and the exposure of sports economics development trends. © 2018 Russian Presidental Academy of National Economy and Public Administration. All rights reserved.
In this paper we analyze the impact of hosting the FIFA Soccer World Cup on GDP per capita in a worldwide sample of countriesusing a transparent statistical methodology for data-driven case studies – the synthetic control method. Using country level annual-data covering all events occurring in the period between 1978 (Argentina) and 2006 (Germany), we show that the estimated averagetreatment effect was either zero or negative for all but one of the countries analyzed. Our results, therefore, support the general claimthat World Cups are not statistically associated to development and economic growth.
Investor sentiment and attention are often linked to the same non-economic events making it difficult to understand why and how asset prices are affected. We disentangle these two potential drivers of investment behaviour by analysing a new data-set of medals for the major participating countries and sponsor firms over four Summer Olympic Games. Our results show that trading volume and volatility are substantially reduced following Olympic success although returns appear to be largely unaffected. Analysis of data from online search volumes and surveys measuring investor sentiment also suggests that the market impact of the Olympics is linked to changes in attention.
The study of the economic impact on the sport as a scientific discipline was born for the identification of the economic benefits of major sports events. Its evolution has led to broader approaches. It has been applied to the study not only of the economic aspect but also the intangible effects in both large and small events, in facilities and franchises. In the present work, the evolution of the study the economic impact of sport science is analyzed using bibliometric during the period 1984-2013. The results from these analyses have been used to prepare a questionnaire in order to get the perception of experts in the field on key aspects of research in the scientific issues. From the work, it can be concluded that the economic impact of sport science is capable of evolution in the area of economics of sport and in a complementary manner in other areas. In addition, this kind of studies has a clear practical application for improving the management of sports events and sporting facilities. © 2017, Universidad Autonoma de Madrid y CV Ciencias del Deporte. All rights reserved.
We use daily airplane arrival data from 2004 to 2015 from Hawaii’s Department of Business, Economic Development, and Tourism to determine the net change in arrivals around a variety of sporting events. We find that only one event generates a positive and significant net impact on airplane arrivals: the Honolulu Marathon, which generates roughly 9800 additional arrivals. No other sporting events result in a measurable increase in arrivals including, notably, the National Football League’s Pro Bowl, which receives the largest subsidy from the state’s tourism authority.
This paper provides an ex-post analysis of the utilisation of the stadiums that were built for the 2010 FIFA World Cup. The South African government invested approximately US523 million into the development of new stadiums and upgrades to existing stadiums, respectively. This paper determines whether the substantial investments into the stadiums’ infrastructure are justified by the utilisation of the stadiums after the 2010 FIFA World Cup event. A utilisation rate and a stadium usage index were used to analyse the utilisation benefits derived from the stadiums. Generally, the results suggest that there has been a significant decline in the utilisation of stadiums following the 2010 FIFA World Cup. Furthermore, the results indicate that the exorbitant costs of the stadiums for the 2010 FIFA World Cup were significant in relation to the underutilisation of the stadiums in the wake of the event. The 2010 FIFA World Cup has left the country with an expenditure legacy of an oversupply of stadiums, thus making some of the stadiums unsustainable. The results of this
study appear to be in line with existing empirical research, which suggests that stadiums tend be underutilised and pose a financial burden for a host nation, subsequent to a mega-event.
Sports can help to increase foreign trade and promote global economic integration. Engaging in sports can provide visibility opportunities for countries and may spur the interest of firms as well as consumers in the respective foreign market. Sport could also help to infuse trust into cross-country business relationships. While previous studies have investigated the role of sport events on trade, this study analyzes whether countries can increase trade between them by engaging in sporting activities with each other. We use soccer, being the world’s most popular sport, as an example when investigating this potential bilateral sport-trade link. Our empirical strategy builds on the fact that many soccer matches between countries’ national teams are the result of a random drawing procedure. Thus, they are a possible source of exogenous variation. Using a gravity model framework, we test the proposed link for approximately 4,800 soccer matches that were played between 209 countries during the period 1995 through 2001. We also analyze the hypothesized underlying impact channel by estimating the impact on trade for goods that are likely to have different elasticity with respect to information and trust friction. The results are indicative of the hypothesis that countries that engage in sporting activities with each other enhance their bilateral trade. These results could have potentially interesting policy implications. Governments may want to consider actively promoting sporting activities together with countries with which they want to enhance their trade.
Often sports leagues, organising committees, and team owners justify the use of public funds to build sports stadiums by the perceived economic impacts and civic pride generated by the teams or mega-events. Since the 1980s many economic studies have examined the economic impact and civic pride created by professional sports teams. Most of the economic literature finds sports teams or mega-events have little or no economic impact, but there are mixed findings on the magnitude of civic pride. Overall, most of the economic literature suggests that the benefits created by sports teams or events do not outweigh the cost of public subsidies provided. We conduct a survey of public opinion on US residents’ perceptions of economic impacts and civic pride benefits from mega-events such as the Super Bowl and the Winter Olympics. Our study asks the question: Do residents believe that mega-events and sports teams generate positive economic impacts and civic pride or not? We find that, like economists, the public doubts that public funding of mega-events is a good idea.
We investigate at the precinct-level the 2001 stadium referendum for the Allianz-Arena in Munich, where voters had to decide upon a projected site as well as on public subsidies for provision of transport infrastructure. This is the first analysis of a stadium referendum with respect to the spatial dimension outside the U.S. The new arena, which is the home venue of the professional soccer clubs FC Bayern München and TSV 1860 München and also was a major venue during the FIFA World Cup 2006 clearly won the approval of a majority of voters in one of the referendums with the largest participation in the history of Munich. However, in proximity of the projected site, residents strongly opposed the project, which reflects in significantly reduced shares of yes-votes. Assuming rationality, we conclude that at city level residents expected an increase in utility from the new arena that justified public expenses. However, our results also point to considerable proximity cost, probably related to the presence of fan crowds and congestion. This finding contradicts the existing evidence on stadium impact from the U.S. There are also major differences in the socio-economic determinants of voting behavior, indicating that the expected net-benefit of proximity to professional sports facilities may vary across sports and countries.
The need to identify the economic benefits of major sporting events gave rise to the study of the economic impact of sports as a scientific discipline which currently encompasses broad approaches that not only study the economic aspect of sports but also analyze the facilities, franchises, intangible effects, and large and small sporting events. Using a bibliometric analysis, this paper studies the evolution of the economic impact of sport, as a science, over the period 1984-2013. Its results have been used as a base from which to explore how experts perceive key thematic research areas. Finally, the paper concludes on the clearly practical application of this type of research towards improving the management of sports events and facilities where this type of research may well evolve even further spreading into other new areas.
Over recent years the BRICS (Brazil, Russia, India, China and South Africa) nations have secured the right to host several major international sporting events. Growth in tourism from developed countries is crucial to turn these events into a successful strategy for economic development. In this paper we use monthly country-by-country arrival data toassess the impact of organising the FIFA 2010 World Cup on tourism in South Africa. We find that South Africa attracted around 220,000 extra arrivals from non-Southern African Development Community (SADC) countries during the event, and 300,000 over the entire year. These numbers are less than the predictions made by the organisers prior to the event andimply that the total cost per extra non-SADC visitor amounted to $13,000. © Theauthor 2014. Published by Oxford University Press on behalf of the Centre for the Study of African Economies. All rights reserved.
The aim of this book was to critically examine the planning, management and implementation of the Football World Cup as a mega-event. It examined how FIFA and World Cup organizing committees produce the event, taking into account the growth of the event over the past century. The express focus of the book was on operational planning and management practices. This area has been an underdeveloped component of Football World Cup research and thus this volume is just a small step towards a more sophisticated understanding of what is needed to effectively manage the sport mega-event. A single book such as this cannot cover all the operational components required of World Cup organizers, so we have concentrated on a selection of key functional areas. There are of course many other areas to be researched; what follows is an overview, though not exhaustive, of potential areas of inquiry into the management and organization of the Football World Cup.
Often sports leagues, event planners, and team owners justify the use of public funds used to build sports stadiums by the perceived economic impacts and civic pride generated by the team or mega event. Since the 1980s, there have been many economic studies looking at the economic impact and civic pride created by professional sports teams. Most of the economic literature supports the idea that no economic impacts were created, however there are mixed results on the magnitude of civic pride. Overall, most of the economic literature suggests that the benefits created by sports teams or events do not outweigh the cost of public subsidies provided. We perform a survey of public opinion on U.S citizens perception of economic impacts and civic pride benefits from mega events such as the Super Bowl and the Winter Olympics. Our study asks the question: Do citizens believe that mega events and sports teams create economic impact and civic pride or not? We find that, like economists, the public is skeptical that public funding of mega events is a good idea.
A range of econometric studies suggest that neither major sports events nor related new stadium construction typically have any appreciable effect on income or employment at municipal scale. However, one important issue has long been ignored in the literature: architectural quality. At present, international stadium architecture is gaining markedly in significance. New stadia are intended to serve as visiting cards for their hometowns and to accelerate urban (re)development. This article discusses the current transition in international stadium architecture and demonstrates important trends, such as the use of iconic elements, by means of selected examples. We provide an overview of the first evidence for the welfare effects of the built environment as well as of expected stadium‐related social costs and benefits. The article also reviews the first empirical evidence for the impact of a stadium at neighborhood scale. Unconventional stadium architecture is recommended as a means of either supporting area rehabilitation or amplifying the image and spending effects produced by professional sports.
Résumé
Un arsenal d'études économétriques suggère que ni les grands événements sportifs, ni la construction des nouveaux stades pour les accueillir n'ont généralement d'impact sensible sur le revenu ou l'emploi à l'échelon municipal. Toutefois, les publications ont longtemps négligé un aspect important: la qualité architecturale. Aujourd'hui, l'architecture des stades internationaux gagne clairement en prégnance. Les nouveaux stades servent de carte de visite aux villes et à accélérer l'aménagement ou la rénovation urbaine. L'article analyse la transition que connaît actuellement l'architecture des stades internationaux et dégage les tendances importantes, telles que les composantes iconiques, à partir d'une sélection d'exemples. Sont présentées les premières indications concernant les effets de l'environnement construit sur le bien‐être, ainsi que les coûts et avantages sociaux attendus relatifs à un stade. L'article examine aussi les premières données empiriques concernant l'impact d'un stade à l'échelon d'un quartier. Une architecture non conventionnelle est conseillée soit pour accompagner la réhabilitation d'une zone, soit pour amplifier les effets au niveau de l'image et des dépenses que génèrent les sports professionnels.
This study analyzes the trading effects of FIFA World Cup in two dimensions. First, we show that participating in the World Cup significantly increases exports from the participant countries to the host countries, relative to a control group of non-participants. Second, we demonstrate that trade is reasonably higher for host-participant pairs compared to other country pairs. We also provide dynamic estimates for both cases and offer plausible arguments and important channels for our findings.
A range of recent studies have shown that the social and economic impacts of mega-events are often disappointing. This has stimulated interest in the notion of leveraging; an approach which views mega-events as a resource which can be levered to achieve outcomes which would not have happened automatically by staging an event. This paper aims to advance understanding about leveraging – by exploring the rationale for this approach and by identifying different types of leveraging and their relative merits. The work critically explores whether mega-event leveraging represents a new approach or whether it simply provides a convenient justification for expensive and controversial mega-event projects. The paper aims to enhance conceptual understanding, rather than to explore a specific case empirically; but a series of examples are used for illustrative purposes. These are drawn from projects adopted in association with the London 2012 Olympic and Paralympic Games.
Success in the FIFA World Cup provides countries with substantial international visibility. This paper uses this information shock associated with the World Cup to show that visibility has a significant impact on trade flows. In isolating the visibility effect, two identification problems are solved. Match outcomes in the World Cup are subject to significant uncertainty. This uncertainty, when combined with controls for economic development, makes World Cup success exogenous to exports. By contrast, hosting the World Cup is potentially endogenous owing to self-selection issues. The paper exploits FIFA's host selection policy to construct exogenous instruments for hosting. The results show that success in the World Cup raises exports temporarily by around 5%.
Local, state, and federal governments, along with the Salt Lake City Organizing Committee, spent roughly $1.9 billion in planning and hosting the 2002 Winter Olympic Games. Event promoters suggested that the Games would increase employment in the state by 35,000 job-years. We investigate whether the 2002 Winter Olympics actually increased employment finding that the Games’ impact was a fraction of that claimed by the boosters. While the Salt Lake City Olympics did increase employment overall by between 4,000 and 7,000 jobs, these gains were concentrated in the leisure industry, and the Games had little to no effect on employment after 12 months.
Background: An insertion-deletion polymorphism of angiotensin converting enzyme (ACE) gene has been shown to be associated with enzyme activity levels of ACE. Reported results that have been mutually contradictory about asthmatic hypersensitiveness and occurrence according to ACE gene insertion (I)/deletion (D) polymorphism. Also, the involvement of the ACE genes as the genetic basis of bronchial asthma is currently controversy. We investigated whether there was any association between polymorphisms of the ACE genes and airway hyper-responsiveness in chronic obstructive pulmonary disease (COPD). Methods: A total of 100 patients with COPD were enrolled in this study. The ACE genotypes were determined in all subjects by polymerase chain reaction. Pulmonary function test including bronchodilator response (BDR), methacholine bronchial provocation test (MBPT) were done in those patients. Airway hyper-responsiveness include any findings of positive BDR or MBPT. Results: In COPD patients, the ACE genotype distribution did not differ significantly among groups of patients with severities of COPD, and with or without airway hyper-responsiveness. Conclusions: These results suggest that polymorphisms of the ACE gene may not be associated with airway hyper-responsiveness, development and severity of COPD.
In recent years, sports franchises have frequently used their monopoly power to extract rents from state and local governments. Taxpayers in cities all over the country foot the bill for new stadiums, improvements to existing stadiums, or infrastructure needed to make new stadiums or arenas as attractive as possible. Despite the beliefs of local officials and their hired consultants about the economic benefits of publicly subsidized stadium construction, the consensus of academic economists has been that such policies do not raise incomes. The results that describe in this article are even more pessimistic, that is, subsidies of sports facilities may actually reduce the incomes of the alleged beneficiaries.
The Summer Olympic Games, it is argued, is a significant cultural good as well as a popular sporting spectacle; it provides the impetus for environmental and economic improvements in the host city, gives a boost to national pride and so on. This paper examines whether there is an economic basis for such claims. To date, attempts to quantify the benefits of hosting major sporting events have focused exclusively on tangible gains; those benefits associated with a clearly identifiable cash-flow. The evidence suggests that genuinely additional tangible benefits tend to fall short of corresponding measures of cost. Therefore, using a contingent valuation survey, we test the proposition that the size of the intangible (net) benefits of the London 2012 Bid might justify staging the event on cost-benefit grounds. Respondents, drawn from London, Manchester and Glasgow, were asked for their willingness to pay (WTP) to host the 2012 Olympic Games in London on the basis of the intangible impacts that this event might provide. A number of interesting issues characterise this application of the CV method. First, in order to familiarise respondents, in a contingent market, with the notion of intangible impacts, they were asked to consider and rate, in terms of relative importance, a number of intangible benefits and intangible costs. Second, respondents' WTP is likely to be conditional on uncertainties about a number of factors such as perceived ability of the host nation to successfully deliver intangible benefits the event, how long the payment period would be and whether a bid itself will be successful. While such considerations might be controllable within the CV scenario, we also elicit information which allows us to investigate to what extent such priors influence WTP values. Third, the event itself is hosted by a specific city and, moreover, is concentrated at a particular location in the host city. Whether intangible impacts are primarily enjoyed by (certain parts of) the host city population rather than the wider country is arguable. Hence, we investigate whether WTP varies across geographical contexts and whether these differences can be explained by characteristics and attitudes of respondents that are observable because of information elicited in a CV questionnaire.
Major League Baseball has rewarded cities that build new baseball stadiums with the chance to host the All-Star Game. Although the league asserts a significant boost to metropolitan economies due to the game, are these economic impact estimates published by the league credible? In two separate economic impact models, the authors find that All-Star Games since 1973 are actually associated with worse than expected economic performance in host cities.
An empirical examination of the determinants of real per capita income in cities with professional sports teams from 1969 to 1997 shows that postseason appearances are not associated with any change in the level of real per capita income in these cities. However, in the city that is home to the winning team from the Super Bowl, real per capita personal income is found to be higher by about $140, perhaps reflecting a link between winning the Super Bowl and the productivity of workers in cities. Overall, economic benefits flowing from future postseason appearances cannot justify public expenditures on professional sports franchises or facilities.
The National Basketball Association (NBA) lockout of 1998–1999 resulted in the cancellation of a significant number of games. According to the claims made by proponents of sports-driven economic growth, cities with NBA franchises should experience significant negative economic losses from this work stoppage because of the lost spending in and around basketball arenas during this event. Although it will be several years before adequate data exist for a careful ex post evaluation of the effects of the lockout, an examination of the impact of past work stoppages in professional football and basketball can shed some light on the potential impact of the NBA lockout as well as the viability of professional sports as engines of economic growth in cities. The parameter estimates from a reduced-form empirical model of the determination of real per capita income in 37 Standard Metropolitan Statistical Areas (SMSAs) over the period 1969–1996 suggest that prior work stoppages in professional football and baseball had no impact on the economies of cities with franchises. Further, the departure of professional basketball from cities had no impact on their economies in the following years. These results refute the idea that attracting professional sports franchises represents a viable economic development strategy.
Using a panel of international student test scores 1980 – 2000 (PISA and TIMSS), panel fixed effects estimates suggest that government spending decentralization is conducive to student performance. The effect does not appear to be mediated through levels of educational spending.
Using a panel of international student test scores 1980 – 2000 (PISA and TIMSS), panel fixed effects estimates suggest that government spending decentralization is conducive to student performance. The effect does not appear to be mediated through levels of educational spending.
On April 1, 1992, New Jersey's minimum wage rose from 5.05 per hour. To evaluate the impact of the law, the authors surveyed 410 fast-food restaurants in New Jersey and eastern Pennsylvania before and after the rise. Comparisons of employment growth at stores in New Jersey and Pennsylvania (where the minimum wage was constant) provide simple estimates of the effect of the higher minimum wage. The authors also compare employment changes at stores in New Jersey that were initially paying high wages (above $5.00) to the changes at lower-wage stores. They find no indication that the rise in the minimum wage reduced employment. Copyright 1994 by American Economic Association.
Using a standard differences-in-differences (DD) technique and a modified DD technique in the slopes, this paper determines that hosting the 1996 Summer Olympic Games boosted employment by 17% in the counties of Georgia affiliated with and close to Olympic activity, relative to employment increases in other counties in Georgia (the rate of growth increased 0.002 percentage points per quarter). Estimation of a random-growth model confirms a positive impact of the Olympics on employment. In addition, the employment impact is shown not to be merely a “metropolitan statistical area (MSA) effect”; employment in the northern Olympic venue areas was found to increase 11% more post- versus pre-Olympics than it did in other, similar southern MSAs. The evidence of an Olympic impact on wages is weak.
Local political and community leaders and the owners of professional sports teams frequently claim that professional sports facilities and franchises are important engines of economic development in urban areas. These structures and teams allegedly contribute millions of dollars of net new spending annually and create hundreds of new jobs, and provide justification for hundreds of millions of dollars of public subsidies for the construction of many new professional sports facilities in the United Sates over the past decade. Despite these claims, economists have found no evidence of positive economic impact of professional sports teams and facilities on urban economies. We critically review the debate on the economic effects of professional sports and their role as an engine of urban economic redevelopment, with an emphasis on recent economic research.
Civic boosters generally have estimated the Super Bowl to have an impact of 400 million on a host city's economy. The National Football League has used the promise of an economic windfall to convince skeptical cities that investments in new stadiums for their teams in exchange for the right to host the event makes economic sense. Evidence from host cities from 1970–2001 indicates the Super Bowl contributes approximately one-quarter of what the boosters have promised and that the game could not have contributed by any reasonable standard of statistical significance, more than $300 million to host economies.
Many sports events, facilities, and franchises are subsidized either directly or indirectly by investments from public sector funds. The scarcity of tax dollars has led to growing public scrutiny of their allocation; in this environment there is likely to be an increased use of economic impact analysis to support public subsidy of these events. Many of these analyses report inaccurate results. In this paper, 11 major contributors to the inaccuracy are presented and discussed. They include the following: using sales instead of household income multipliers; misrepresenting employment multipliers; using incremental instead of normal multiplier coefficients; failing to accurately define the impacted-area; including local spectators; failing to exclude “time-switchers” and “casuals;” using “fudged” multiplier coefficients; claiming total instead of marginal economic benefits; confusing turnover and multiplier; omitting opportunity costs; and measuring only benefits while omitting costs.
About one century ago, professional sports became prominent in American public life. During its early years, the business of sports was primarily a private undertaking, financed with private money and played in private stadiums and arenas. But state and local government subsidies to professional sports businesses have proliferated over the past few decades, and economic arguments have been crafted to justify the subsidies, These arguments typically rest on the assertion that professional sports is a significant, even unique, catalyst for economic growth. By this reckoning, stadiums and teams are "cash cows" that expand the economy and enable further public investment in other critical areas. Public funds are increasingly scarce. We must test the argument that professional sports offer an important return on government subsidies. The purpose of this paper is to use economic theory and empirical techniques to assess the contribution of professional sports to metropolitan area economic development in the United States. The study consists of five parts. Part 1 briefly reviews the economic literature on professional sports and urban development. Part 2 discusses the ways professional sports can have an economic impact on an area and explores the challenges inherent in measuring this effect through "expenditure" and "multiplier" analysis.
The purposes of this study are to present a conceptual framework for identifying and understanding the long-term impacts of a mega-event on international travel to the host country and to apply a component of that conceptual framework in an analysis of international visitation to Korea as a result of the 1988 Summer Olympic Games. Study results indicate (1) mega-events do have a long-term impact on the international tourism to the host country; (2) that impact is greatest in the year following the event and diminishes over time; and (3) in the case of Korea the value of the benefit realized in a three-year period is estimated to be $1.3 billion.
The full-waveform inversion algorithm using normalised seismic wavefields can avoid potential inversion errors due to source estimation required in conventional full-waveform inversion methods. In this paper, we have modified the inversion scheme to install a weighted smoothness constraint for better resolution, and to implement a staged approach using normalised wavefields in order of increasing frequency instead of inverting all frequency components simultaneously. The newly developed scheme is verified by using a simple two-dimensional fault model. One of the most significant improvements is based on introducing weights in model parameters, which can be derived from integrated sensitivities. The model-parameter weighting matrix is effective in selectively relaxing the smoothness constraint and in reducing artefacts in the reconstructed image. Simultaneous multiple-frequency inversion can almost be replicated by multiple single-frequency inversions. In particular, consecutively ordered single-frequency inversion, in which lower frequencies are used first, is useful for computation efficiency.
After hosting the 1994 Winter Olympics, the Norwegian national and local authorities expected a ‘big boom’ in tourism; the actual effects have been less than, and different from, the predictions, and 40% of the full-service hotels in Lillehammer have gone bankrupt. This paper compares ex ante theories and predictions with the ex post reality. Reference areas and time-series analysis are used to clarify the counterfactual and internal validity. International comparisons among Olympic hosts identify general patterns. The aim is to help planners of mega-events and other rare projects to improve their forecasting and decisions. Ex post studies can improve the quality of future ex ante impact assessment of unique projects, but it is important to clarify partial, interaction and cumulative effects. Also, much more careful market and cost-benefit studies are needed.
More and more cities are being encouraged to subsidize sports stadiums as an economic development tool. In this paper regression analysis using census data on nine different metropolitan areas is employed to evaluate the impact of stadiums and professional sports teams on area development. Previous attempts to estimate the effectiveness of sports-based development have used assumption-driven trade multiplier models. The evidence presented here is that the presence of a new or renovated stadium has an uncertain impact on the levels of personal income and possibly a negative impact on local development relative to the region. These results should serve as a caution to those who assume or assert a large positive stadium impact. -Authors
We use hedonic rent and wage equations to measure compensating differentials in central cities and metropolitan areas with franchises of the National Football League. Rents are about 8 percent higher in the central cities, but this impact may not carry over to broader geographical areas. Wages are about 2 percent lower in areas with teams, but the standard error on this parameter is large. The central city results indicate that sports franchises appear to be a public good. Once these quality-of-life benefits are included in the calculus, the large public expenditure on new stadiums appears to be a good investment for cities and their residents.
We use hedonic rent and wage equations to measure compensating differentials in central cities and metropolitan areas with franchises of the National Football League. Rents are about 8 percent higher in the central cities, but this impact may not carry over to broader geographical areas. Wages are about 2 percent lower in areas with teams, but the standard error on this parameter is large. The central city results indicate that sports franchises appear to be a public good. Once these quality-of-life benefits are included in the calculus, the large public expenditure on new stadiums appears to be a good investment for cities and their residents.
This paper explores the impact of professional sports teams and stadiums on employment and earnings in specific sectors in US cities. Previous research focused on aggregate measures of income or employment. We find that professional sports have a small positive effect on earnings per employee in one sector, amusements and recreation, and an offsetting decrease in both earnings and employment in other sectors, supporting the idea that consumer spending on professional sports and spending in other sectors are substitutes. This helps to explain the negative total economic impact of sports found in other studies.
This study empirically investigated residents’ perceptions on impacts of the 2002 World Cup that was held in Korea and Japan. Factor analysis of 22 positive impact items produced five dimensions and factor analysis of nine negative impact items produced three dimensions. Results revealed that housewives tended to perceive the impacts of the soccer event more positively than other occupation groups. In a comparison of residents’ opinions and perceptions on impacts over two points in time, respondents showed a decrease of mean values on two residents’ opinion items and one positive impact item, and an increase in one negative impact item. Thus, the results indicated that attitudes towards the event are likely to be modifiable with passage of time.
The purposes of this study were (1) to examine the South Korean residents’ perceptions of the impacts of the 2002 World Cup Games on their communities before and after the games and (2) to compare any perceptual differences between the two time periods. Using the data collected prior to the 2002 World Cup Games, an exploratory factor analysis was performed to identify perceived impact dimensions. These identified dimensions were validated with the data collected after the games. MANOVA and a series of ANOVA tests were performed to analyze the differences in perceptions before and after the games. Significant differences were found in every dimension: benefits of cultural exchange, social problems, economic benefits, natural resources and cultural development, traffic congestions and pollution, price increase, and construction costs. The findings of this study can be used as valuable information for future sports mega-events organizing/governing bodies.
This study investigates how the construction of a sports stadium affects residential housing values. Hedonic analyses are conducted to assess the price differentials between housing units in close proximity to FedEx Field (home of the Washington Redskins) and comparable units away from it. Using a difference-in-difference approach, the study finds that properties near FedEx Field sold at a discount; however, this price differential was narrowed after the completion of the stadium. Contrary to neighborhood activists’ concern that sports venues adversely affect property values, the findings of this study indicate that a new stadium improves housing values in the surrounding area.
We analyzed impacts on single-fam- institutional settings. As part of the nationily home prices of eleven, small-scale supportive wide “deinstitutionalization” movement housing facilities announced in Denver during beginning in the 1970s, chronically men- 1989–1995.Using a difference in differences econo- tally ill, developmentally and physically dis- metric specification, we found that these facilities abled, non-violent produced a positive impact on house prices within offenders, recovering 1,001 to 2,000 feet.We attributed this effect to coun- substance abusers, and frail elderly inditervailing externalities (building rehabilitation vs. viduals have increasingly been domiciled resident behaviors) that vary in their spatial extent. in small-scale facilities located in residen- Supportive housing facilities were systematically tial neighborhoods. This “normalization” sited in neighborhoods with declining relative of residential environment, coupled with prices compared to elsewhere in the census tract. on-site and on-call specialized care, is seen This location bias led a conventional econometric as therapeutic bymany policy makers (New- specification to erroneously estimate a negative property value impact from supportive housing.
Olympic Games may have impacts on income and employment in the host city, but no ex post study has been carried out for European Olympic host cities to date. The present study closes this gap using the 1972 Munich Olympic Games. The data period examined in this study allows for analysis of long-term effects. In addition, the methodology avoids overestimating the significance of the effects. Finally, we report results for all possible combinations of pre- and post-Olympic periods. The results: income in Olympic regions grew significantly faster than in other German regions. In contrast, no employment effects were identified.
Most papers that employ Differences-in-Differences estimation (DD) use many years of data and focus on serially correlated outcomes but ignore that the resulting standard errors are inconsistent. To illustrate the severity of this issue, we randomly generate placebo laws in state-level data on female wages from the Current Population Survey. For each law, we use OLS to compute the DD estimate of its "effect" as well as the standard error of this estimate. These conventional DD standard errors severely understate the standard deviation of the estimators: we find an "effect" significant at the 5 percent level for up to 45 percent of the placebo interventions. We use Monte Carlo simulations to investigate how well existing methods help solve this problem. Econometric corrections that place a specific parametric form on the time-series process do not perform well. Bootstrap (taking into account the autocorrelation of the data) works well when the number of states is large enough. Two corrections based on asymptotic approximation of the variance-covariance matrix work well for moderate numbers of states and one correction that collapses the time series information into a "pre"- and "post"-period and explicitly takes into account the effective sample size works well even for small numbers of states. © 2004 the President and Fellows of Harvard College and the Massachusetts Institute of Technology
Baade R. A. and Matheson V. A. (2004) The quest for the cup: assessing the economic impact of the World Cup, Reg. Studies 38, 343-354. Hosting the World Cup, the world's second largest sporting event, is a potentially expensive affair. The co-hosts of the 2002 games, Japan and South Korea, spent a combined US5·5 to 4 billion gain touted by event boosters. Potential hosts should consider with care whether the award of the World Cup is an honour or a burden.
This paper presents some results using the sport-economic simulation model SPORT. This model is based on a sport-specific input-output table for the year 1993, which has been integrated into the German INFORGE model. The performance of this model founded on the INFORUM philosophy. The results illustrate the importance of modelling sport-economic activities in deep detail, especially the integration of the system of national accounts. In addition, the results also show that it is possible to calculate the macroeconomic effects of the soccer World Cup, which may perhaps be hosted by Germany in 2006, with regard to the different financing of necessary extensions of public sports infrasfructure. Under favourable conditions-independent of the type of financing of these necessary investments-the staging of the soccer World Cup positively influences income and employment. Such calculations allow the decision-maker to estimate the opportunity costs of their decisions and can be the basis for an extended cost-benefit analysis.
Using a panel of international student test scores 1980 – 2000 (PISA and TIMSS), panel fixed effects estimates suggest that government spending decentralization is conducive to student performance. The effect does not appear to be mediated through levels of educational spending.
The World Cup will be the biggest sporting event of 2002, but the Japanese and Korean governments are also hoping that it will be one of the biggest economic events of the year. Impact studies by respected economic research institutes predict a dramatic boost to GDP in both countries. This paper explains how these forecasts are generated and explains the tendency for such forecasts to be over-optimistic. The paper concludes with some policy recommendations for governments and sporting bodies considering hosting such events.
This paper exploits the significant reduction in impediments to labor mobility in the process of German re-unification in order to identify labor supply shocks in the West German labor market. The focus is on the quasi-experiment of the border removal in the regions situated at the German-German border that faced a massive increase of cross-border labor supply. The results indicate that despite a gain in employment, the border removal was accompanied by a decline in wages and an increase in unemployment relative to other West German regions. Copyright Verein für Socialpolitik and Blackwell Publishing Ltd. 2007.
Bruttoinlandsprodukt der kreisfreien Städte und Landkreise in der Bundesrepublik Deutschland (Gross domestic product of the municipalities and rural districts in the Federal Republic of Germany). Stuttgart; various years
- Arbeitskreis Volkswirtschaftliche Gesamtrechnungen Der Länder
The Growth Effects of Sport Franchises, Stadia, and Arenas
- Coates
Bruttowertschöpfung der kreisfreien Städte und Landkreise in der Bundesrepublik Deutschland (Gross value added of the municipalities and rural districts in the Federal Republic of Germany)
- Arbeitskreis Volkswirtschaftliche Gesamtrechnungen Der Länder
Chicago Hosts Opening Game of World Cup
- Goodman
Economic Impact of the SA 2010 FIFA World Cup
- Grant
Experience goods and biases in CVM - The case of Soccer WC 2006
- Heyne