We analyze the economic impact of the German high-speed rail (HSR) connecting Cologne and Frankfurt, which provides plausibly exogenous variation in access to surrounding economic mass. We find a causal effect of about 8.5% on average of the HSR on the GDP of three counties with intermediate stops. We make further use of the variation in bilateral transport costs between all counties in our study area induced by the HSR to identify the strength and spatial scope of agglomeration forces. Our most careful estimate points to an elasticity of output with respect to market potential of 12.5%. The strength of the spillover declines by 50% ever 30 minutes of travel time, diminishing to 1% after about 200 minutes. Our results further imply an elasticity of per-worker output with respect to economic density of 3.8%, although the effects seem driven by worker and firm selection.

This study analyzes all 216 broadcasts of the German national football team from January 1993 to June 2008 to identify which factors ensure the success of televised sport broadcasts. The results reveal that demand depends mostly on the type of match and its importance in a tournament context. Viewers prefer a national team with established star players and high-quality opponents. Factors unrelated to the sport, such as the kickoff time or weather, have some influence, but coaches and holidays are insignificant. Forecasts based on the proposed model can aid television broadcasters, sports rights agencies, advertisers, and media planners in determining the value of a particular broadcast.

Previous research using attendance‐based proxies for sentiment bias in sports betting markets confirmed the presence of investor sentiment in these markets. We use data from social media (Facebook “Likes”) to proxy for sentiment bias and analyze variation in bookmakers' prices investor sentiment. Based on betting data from seven professional sports leagues in Europe and North America, we find evidence that bookmakers increase prices for bets on teams with relatively more Facebook “Likes,” indicating the presence of price‐insensitive investors with sentiment bias. These price changes do not affect informational efficiency in this market. (JEL L81, G14)

Suggested Citation: Feddersen, Arne; Grötzinger, André L.; Maennig, Wolfgang (2008) : Investment in stadia and regional economic development: evidence from FIFA World Cup 2006, Hamburg contemporary economic discussions, No. 16, ISBN 978-3-940369-47-5 outside of the USA. This study is also the first work on this topic that conducts tests on the basis of a (serial correlation consistent) Difference-in-Difference model with level and trends. As a robustness check, we use the "ignoring time series information" model in a form that is modified for nonsynchronous interventions. We were not able to identify income or employment effects of the construction of new stadiums for the FIFA World Cup 2006, which are significantly different from zero.

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The major sporting success of one's countrymen and women is often supposed to promote the growth of general participation in that sport. This study is the first to analyse the impact of sports heroes on the membership figures of the corresponding sports association by means of an econometric analysis. We do so by evaluating the so-called "Boris Becker effect" by simultaneously testing for the effects of the rise and retirement of the three stars Boris Becker, Stefanie Graf, and Michael Stich. As a first paradox, our results indicate a negative tennis growth effect associated with the time period of the ascendency of the sport stars. With the first paradox, their retirement should then have a positive effect. In this sense, our second result of a statistically negative tennis growth since the declining success of the German tennis stars must be regarded as a second paradox. Terms of use: Documents in