Business Commons^™

Modeling Resident Spending Behavior During Sport Events: Do Residents Contribute To Economic Impact?, Nola Agha, Marijke Taks

Sport Management

The role of residents in the calculation of economic impact remains a point of contention. It is unclear if changes in resident spending caused by an event contribute positively, negatively, or not at all. Building on previous theory we develop a comprehensive model that explains all 72 possible behaviors of residents based on changes in (a) spending, (b) multiplier, (c) timing of expenditures, and (d) geographic location of spending. Applying the model to Super Bowl 50 indicates that few residents were affected, positive and negative effects were relatively equivalent, thus their overall impact is negligible. This leaves practitioners the option …