Graduation Year

Fall 2010

Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Nzinga Broussard

Abstract

The intention of this study is to analyze the economic impact of redeveloped Major League Baseball stadiums opened between 1991 and 2004. Using two empirical models, including an event study, this impact analysis captures the economic conditions of the cities during the opening year of the stadium, as well as the prior conditions leading up to the opening of the stadium, along with any lingering effects or gradual changes in conditions. The impact was measured in relation to the Metropolitan Statistical Areas corresponding to the 18 ballparks included, specifically looking at the impact on employment rates and per capita personal income. The common assumption is that stadium redevelopment will provide a positive impact on the surrounding community, initiating revitalization of urban neighborhoods as well as increasing job opportunities, income levels, and city revenues. While previous research on the effects of stadium development have mostly concluded that there is no positive or significant quantitative impact resulting from stadiums, this study shows that the boom of ballpark redevelopment may actually have positive effects, contrasting this prior research. With the results showing small, yet positive effects, the recent boom period may actually have been so far effective in initiating new development and revitalized culture in urban areas, and will therefore be useful in further developing future plans for modernizing and redeveloping baseball stadiums.

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