Date of This Version
Major League Baseball teams have used the lure of economic riches as an incentive for cities to construct new stadiums at considerable public expense. Estimates of the economic impact of a MLB on host communities have typically been in the vicinity of $300 million. Our analysis suggest these numbers are wildly inflated. Using the baseball strikes of 1981, 1994, and 1995 as test cases, we find the net economic impact for a MLB team on a host city of $16.2 million under one model and $132.3 million under a second model.
Working Paper Number
Matheson, Victor and Baade, Robert, "Striking Out? The Economic Impact of Major League Baseball Work Stoppages on Host" (2005). Economics Department Working Papers. Paper 86.