The Economic Impact of Stadia and Teams: The Case of Minor League Baseball

Journal of Sports Economics, 14(3), 227-252

Posted: 29 Sep 2013

See all articles by Nola Agha

Nola Agha

University of San Francisco

Date Written: June 1, 2013

Abstract

This article uses an extensive unique data set to investigate the efficiency of government subsidies for minor league baseball teams and stadiums by measuring pecuniary gains in a local economy. Specifically, a dynamic panel data model incorporating 238 Metropolitan Statistical Areas (MSAs) that hosted affiliated or independent minor league teams between 1985 and 2006 shows that AAA teams, AB teams, AA stadiums, and rookie stadiums are all associated with significant positive effects on the change in local per capita income. The presence of positive effects is strikingly different from decades of non-positive results at the major league level.

Keywords: economic impact, minor league baseball, efficiency, sports stadiums

JEL Classification: L83, H23

Suggested Citation

Agha, Nola, The Economic Impact of Stadia and Teams: The Case of Minor League Baseball (June 1, 2013). Journal of Sports Economics, 14(3), 227-252, Available at SSRN: https://ssrn.com/abstract=2332160

Nola Agha (Contact Author)

University of San Francisco ( email )

2130 Fulton Street
San Francisco, CA 94117
United States

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