Sports facilities, agglomeration, and public subsidies

Brad Humphreys and Li Zhou ()

Regional Science and Urban Economics, 2015, vol. 54, issue C, 60-73

Abstract: We develop a monopolistic competition model of urban service consumption and production that includes spatial structure and property values. The model shows that the introduction of a new professional sports facility and team generates agglomeration effects that change the mix of services and property values, and increases local welfare, part of which is transferred to the team as subsidies for the construction of the facility. The distributional consequences of the new facility and the implications of property tax based financing for the subsidy are analyzed.

Keywords: Agglomeration effects; Sports facilities; Subsidies (search for similar items in EconPapers)
JEL-codes: H71 L83 R13 R58 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:54:y:2015:i:c:p:60-73

DOI: 10.1016/j.regsciurbeco.2015.07.004

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