Wednesday, April 30, 2008

Do stadiums boost local economies?

Economists find little evidence of large increases in income or employment associated with the introduction of professional sports or the construction of new stadiums. Here are some possible explanations:
  • consumer spending on sports may simply substitute for other kinds of spending
  • spending at the stadium translates into salaries for wealthy athletes, many of whom live outside the city where they play.
  • stadium subsidy comes from raising local taxes which makes the economy less efficient.

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