Sense on stadiums: rooting against the home team.
Author | Doherty, Brian |
Position | Research - Brief article |
A SPORTS TEAM can always hire consultants to claim that if only the city or state would help them build a new stadium, there would be a multi-million dollar payoff in tax revenues, jobs, and other public goods. Independent economists, on the other hand, have generally found such projects to be more boondoggle than home run.
According to a recent study by the economists Bruce K. Johnson of Centre College in Kentucky, Michael J. Mondello of Florida State University, and John C. Whitehead of Appalachian State University, the public recognizes this as well. The researchers used the "contingent valuation method," which surveys people to estimate economic values for things they aren't directly buying themselves. Many economists argue that this method often overstates people's willingness to pay for public goods such as sports team spillovers. Yet the study discovered in the case...
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