Estimation of Economic impact
Added on 2022-09-14
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PUBLICLY FINANCED
STADIUM
Grizli777
hp
STADIUM
Grizli777
hp
Publicly Financed stadiums
Reason for overestimation of economic impact of sports stadium- Estimation of
economic impact depends upon the level of return from the construction. Economic
opportunities of a sports stadium can be mentioned as-
It generates employment for its operation and management.
It generates revenue for local administration which is more from visitors from
other states.
Its construction generates employment.
Multiple positive externalities around the corresponding localities and allied
trade activities.
It can be a fillip for tourism and real estate industry.
Organisations of various sports event create opportunities for local authorities
as it will cause congregation of corporate ("Economics Of Subsidizing Sports
Stadiums | St. Louis Fed", 2019).
Now whether these impacts are the reason behind overestimation of economic
impact or not is a matter of discussion, which gives that the level of employment
generated is not in proportion to that of subsidy provided from taxpayer’s money.
Also the employment generation during construction lasts only till its construction.
Positive externalities are the only benefit from construction of sports stadium using
taxpayer’s money as more than 3.5 million persons attended the St. Louis
Cardinals play at Busch Stadium in 2015 that causes huge increase in the
business of hotels, restaurants and allied activities. And the congregation of
corporate cause benefit to them because of the organisation of event there
("Publicly Financed Sports Stadiums Are A Game That Taxpayers Lose", 2019).
Ethical impact of overestimation of economic impact – Economic Robert Baade
in his examination of 30 cities with large construction projects reveals that 27 of them
don’t have any impact, neither socially nor economically. Overestimation of
Economic impacts of large construction causes several ethical impacts which can be
mentioned as –
Positive impact over local elected officials.
Acts as growth engine of localities.
Reason for overestimation of economic impact of sports stadium- Estimation of
economic impact depends upon the level of return from the construction. Economic
opportunities of a sports stadium can be mentioned as-
It generates employment for its operation and management.
It generates revenue for local administration which is more from visitors from
other states.
Its construction generates employment.
Multiple positive externalities around the corresponding localities and allied
trade activities.
It can be a fillip for tourism and real estate industry.
Organisations of various sports event create opportunities for local authorities
as it will cause congregation of corporate ("Economics Of Subsidizing Sports
Stadiums | St. Louis Fed", 2019).
Now whether these impacts are the reason behind overestimation of economic
impact or not is a matter of discussion, which gives that the level of employment
generated is not in proportion to that of subsidy provided from taxpayer’s money.
Also the employment generation during construction lasts only till its construction.
Positive externalities are the only benefit from construction of sports stadium using
taxpayer’s money as more than 3.5 million persons attended the St. Louis
Cardinals play at Busch Stadium in 2015 that causes huge increase in the
business of hotels, restaurants and allied activities. And the congregation of
corporate cause benefit to them because of the organisation of event there
("Publicly Financed Sports Stadiums Are A Game That Taxpayers Lose", 2019).
Ethical impact of overestimation of economic impact – Economic Robert Baade
in his examination of 30 cities with large construction projects reveals that 27 of them
don’t have any impact, neither socially nor economically. Overestimation of
Economic impacts of large construction causes several ethical impacts which can be
mentioned as –
Positive impact over local elected officials.
Acts as growth engine of localities.
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