nep-spo New Economics Papers
on Sports and Economics
Issue of 2011‒06‒04
four papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. The contribution of sport to national pride and well-being: An international perspective By Paul Downward; Tim Pawlowski; Simona Rasciute
  2. Labor Market Effects of the World Cup: A Sectoral Analysis By Robert Baumann; Bryan Engelhardt; Victor Matheson
  3. Is Self-Sufficiency for Women’S Collegiate Athletics a Hoop Dream?: Willingness to Pay for Men’S and Women’S Basketball Tickets By Rosas, Juan (Francisco); Herriges, Joseph A.; Orazem, Peter
  4. A non-parametric analysis of the efficiency of the top European football clubs By Halkos, George; Tzeremes, Nickolaos

  1. By: Paul Downward (Loughborough University); Tim Pawlowski (German Sport University Cologne); Simona Rasciute (Loughborough University)
    Abstract: As well as being a growing academic literature, SWB is now firmly on the public policy agenda. Likewise, the sports industry is viewed as being of growing economic significance, reflected in its promotion in public policy. This paper explores the impact of engagement with sports on individual subjective well-being (SWB) for a sample of 34 countries. Engagement with sports is defined to include formal and informal participation, as well as attendance at sports events. It is hypothesized that one dimension of SWB associated with sports by individuals in a country is the pride felt by them as a result of international sports success. To provide a robust account of the determinants of these dimensions of SWB a variety of estimators are employed that also account for any feedback between them. Account is also taken of different country level effects on the impacts. Controlling for standard covariates associated with SWB the results suggest that all forms of sports engagement enhance SWB. However, it is suggested that there is also an indirect impact of pride felt from international sporting success on SWB. Crucially, these effects are, in part, determined by formal participation in sport, or attendance at sport events but not informal participation. Further, there is some evidence that pride has a strong country-level dimension. A further interesting policy dilemma raised by the research is that passive engagement at sports is more likely to raise SWB.
    Keywords: Well-being, National Pride, Sport, Ordered Probit models, Random Effects, Fixed Effects
    JEL: D60 I31 L83
    Date: 2011–05
  2. By: Robert Baumann (Department of Economics, College of the Holy Cross); Bryan Engelhardt (Department of Economics, College of the Holy Cross); Victor Matheson (Department of Economics, College of the Holy Cross)
    Abstract: This paper provides an empirical examination of impact the 1994 FIFA World Cup in the United States on local employment. In contrast to ex ante economic impact reports that suggest large increases in employment due to the tournament, an ex post examination of employment in 9 host metropolitan areas finds no significant impact on employment from hosting World Cup games. Furthermore, an analysis of employment in specific sectors of the economy finds no impact from hosting games on employment in the leisure and hospitality and professional and business services sectors but a statistically significant negative impact on employment in the retail trade sector.
    Keywords: World Cup, soccer, impact analysis, mega-event, tourism
    JEL: L83 O18 R53 J21
    Date: 2011–05
  3. By: Rosas, Juan (Francisco); Herriges, Joseph A.; Orazem, Peter
    Abstract: Universities spend almost $2 billion subsidizing their collegiate sports programs.  Even the most popular women’s sport, basketball, fails to break even. An application of Becker’s theory of customer discrimination is used to calculate the relative preference for men’s basketball for both men and women. Median willingness to pay for men’s basketball relative to women’s basketball is 180% greater for men and 37% greater for women.  Pricing each sport at its revenue maximizing price, revenues from women’s basketball are only 43% of that for men, even at a school with historically strong demand for women’s sports.
    Keywords: Basketball; Becker; reservation price; revenue; customer discrimination; cross marketing; NCAA
    JEL: D12 L83 M31
    Date: 2011–05–26
  4. By: Halkos, George; Tzeremes, Nickolaos
    Abstract: This paper analyses how European football clubs’ current value and debt levels influence their performance. The Simar and Wilson (J Econometrics, 136: 31–64, 2007) procedure is used to bootstrap the data envelopment analysis DEA scores in order to establish the influence of football clubs’ current value and debt levels on their obtained efficiency performances. The results reveal that football clubs’ current value levels have a negative influence on their performances, indicating that football clubs’ high value doesn’t ensure higher performance. At the same time, the empirical evidence suggests that there is no influence associated of football clubs’ debt to their efficiency levels.
    Keywords: European football clubs; Data Envelopment Analysis; Truncated regression; Bootstrapping
    JEL: C69 C14 L83
    Date: 2011–05

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