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on Cultural Economics |
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Issue of 2021‒12‒20
two papers chosen by Roberto Zanola Università degli Studi del Piemonte Orientale |
| By: | Robert Baumann (College of the Holy Cross); Victor Matheson (College of the Holy Cross); E. Frank Stephenson (Berry College); Robert Murray (College of the Holy Cross) |
| Abstract: | Despite claims, primarily from Republican lawmakers, that the removal of the 2021 Major League Baseball All-Star Game has cost local businesses in the Atlanta area $100 million in damages, an examination of hotel occupancy during the 2014 All-Star Game in Minneapolis and the 2019 All-Star Game in Cleveland suggests that these events generated at most 10,000 additional room nights and $4.5 million in additional hotel revenues for the host cities. These figures suggest that the All-Star Game generates a total direct marginal increase in tourism spending of only $3.9 to $9.4 million. Claiming that Georgia has lost $100 million from the removal of the game is pure fiction with no basis in economic data. |
| Keywords: | sports, stadiums, baseball, All-Star Game, mega-events |
| JEL: | L83 Z20 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:hcx:wpaper:2101&r= |
| By: | Raj Chandra; Gabriel E. Lade; GianCarlo Moschini (Center for Agricultural and Rural Development (CARD) at Iowa State University) |
| Abstract: | A systematic component of wine quality is believed to depend on the geo-climatic factors of its production conditions. This belief has long been a motivation for the development of geographical indications for wines. In the United States, American Viticulture Areas (AVAs) represent the most common geographic factor firms use to differentiate their products. In this paper, we estimate a discrete choice model of US wine demand to study the market and welfare impact of AVAs. Specifically, we develop a two-level nested logit choice model, featuring many wine products and characteristics-including wine type, brands, and varietals, in addition to AVAs-and estimate it using Nielsen Consumer Panel data over the 2007-2019 period. We find significant welfare gains from AVA information on wine labels. Over the period of interest, the welfare gain attributable to AVAs is estimated at about $2.37 billion, with wine producers and retailers capturing approximately 80% of this surplus. Approximately 90% of consumer welfare gains are due to product differentiation and increased variety, with the remaining gains due to price decreases resulting from increased product competition. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:21-wp628&r= |