Business Commons^™

Historical Horse Racing Dominates Gambling Expenditures In Kentucky—Even Outperforms The Lottery. But Why?, Thomas E. Lambert

Faculty Scholarship

With sports gambling coming to the Commonwealth of Kentucky in September 2023, another competitor to various gaming activities in the state raises the question of how it is doing relative to the others, especially its major competition. As can be seen in the table below, for its first four months of operation, sports gambling in the state brings in almost $900 million and averages around $223 million per month. This average is better than typical monthly lottery sales which come in at around $161 million per month and is far above on and off-track (including simulcasting) racing betting which averages …

Horse Racing And Historical Horse Racing’S Impact On The Kentucky Economy: Possible Hhr Saturation?, Thomas E. Lambert

Faculty Scholarship

The Commonwealth of Kentucky currently has 5 thoroughbred racing tracks and 3 harness racing tracks (Kentucky Horse Racing Commission 2023 and Mint Julep Louisville 2021). As Table 1 below shows, the industry employees roughly 7,000 people (direct jobs), and these jobs annually support another 2,000 jobs or so throughout the state. These 2,000 jobs are jobs that are provided by the suppliers to the horse race tracks (indirect jobs) and jobs that are created by the spending of the race track employees and the employees of suppliers on food, housing, transportation, and clothing by vendors and retailers throughout the state …

Is The Declining Birthrate Really An Issue For The Economy?, Harsh Ramesh Pednekar, Theodore Lee, Darrion Chin

Introduction to Research Methods RSCH 202

This study aims to explore the complex implications of declining birth rates on the economy, focusing on GDP per capita as a crucial metric, and aims to uncover both potential opportunities and challenges stemming from this demographic transformation using regression analysis. Using a quantitative methodology and secondary data from OECD.stat, World Population Review, and World Bank, the study explores the relationship between declining birth rates and economic impacts. GDP per capita serves as an essential dependent variable, and it accounts for control variables such as labour force participation, literacy, and education levels, child dependence ratio, and physical capital. Past studies …

Spreading Kindness And Generosity: Nonprofits, Fundraising And Volunteering In East Texas, Manuel Reyes-Loya, Cecilia Cuellar

Hibbs Brief

In this issue of the Hibbs Brief, we discuss kindness and generosity in our communities and their economic impact on our region. We explore figures associated with nonprofit organizations and volunteering in Texas, particularly for the East Texas region and the Tyler Metropolitan Statistical Area (MSA).

Horse Sense Or Horse Hype? Estimating The True Economic Impact Of Churchill Downs And The Kentucky Derby On The Louisville Metro Area, Thomas E. Lambert

Faculty Scholarship

In trying to assess the true economic impact of the Kentucky Derby on the Louisville region (north central Kentucky and south central Indiana counties), one can find two different estimates appear in doing a quick search on the internet. Some sources, such as the Kentucky Derby Museum, indicate that the economic impact of the Derby is around $217 million (Kentucky Derby Museum 2023) but never mention a source or study for this conjecture. In doing some research, this amount is determined to come from a 2001 study by the marketing research firm Wilkerson and Associates (LaMarra 2001), and therefore this …

The Most Wonderful Time Of The Year: Many Retail Stores May Concur, Manuel Reyes-Loya, Cecilia Cuellar

Hibbs Brief

In this issue of the Hibbs Brief, we discuss retail sales during the holiday season in the U.S., and we estimate its economic impact on the Tyler Metropolitan Statistical Area (MSA).

A Comparison Of The Economic Impact Of Horse Racing Tracks In Kentucky Versus Neighboring Indiana, Thomas E. Lambert

Faculty Scholarship

The Louisville metro area is one that spans two states—Kentucky and Indiana. Since the University of Louisville has many students and employees who come from the Hoosier State, it would be interesting to see how the two states compare when it comes to what has been labeled a “signature” industry for the Commonwealth of Kentucky—horse racing.

The Economic Impact Of The Red Mile On The Lexington Metro Area, Thomas E. Lambert

Faculty Scholarship

The Red Mile Racetrack and Red Mile Gaming Center in Lexington, Kentucky have a harness racetrack, and the track has had a solid tradition for quality harness racing going back to its start in 1875 (Red Mile 2022). This paper examines what economic impact the racetrack and gaming center have on the Lexington metro area (Bourbon, Clark, Fayette, Jessamine, Scott, and Woodford counties in Kentucky) on a yearly basis.

The Economic Impact Of Keeneland Race Course On The Lexington Metro Area With Projections For This Year’S Breeders Cup, Thomas E. Lambert

Faculty Scholarship

Keeneland Race Course in Lexington, Kentucky has had a long tradition for quality horse racing going back to its inception in 1936 (Keeneland 2022). With the 2022 Breeders’ Cup World Championships coming to the race track this November, this paper examines what economic impact the race track has on the Lexington metro area (Bourbon, Clark, Fayette, Jessamine, Scott, and Woodford counties in Kentucky) on an annual basis and how the 2022 Breeders’ Cup will boost the impact of the race track when compared to a typical year.

The Economic Impact Of Buying And Redeveloping Ellis Park By Churchill Downs, Thomas E. Lambert

Faculty Scholarship

Churchill Downs’ acquisition of Ellis Park Racing and Gaming in Henderson, Kentucky reflects the growing number of mergers across the US among racetracks, racetracks and casinos, and casinos with other casinos. Some years back, Ellis racetrack closed for one year due to declining profitability, yet after new ownership took over and a gaming center was added, it began a rebound in earnings (Courier and Press 2008). The $75 million that Churchill Downs plans to spend to transform Ellis Park (Schulz 2022) will have a much bigger impact than the construction, revamping, and expansion of park facilities. This is in addition …

The Economic Impact Of Horse Racing Tracks And Historical Horse Racing In Kentucky, Thomas E. Lambert

Faculty Scholarship

The Commonwealth of Kentucky currently has 5 thoroughbred racing tracks and 3 harness racing tracks (Mint Julep Louisville 2021). As Table 1 below shows[1], the industry employees roughly 6,000 people (direct jobs), and these jobs annually support another 1,500 jobs or so throughout the state. These 1,500 jobs are jobs that are provided by the suppliers to the horse race tracks (indirect jobs) and jobs that are created by the spending of the race track employees and the employees of suppliers on food, housing, transportation, and clothing by vendors and retailers throughout the state (induced jobs). The direct …

Sharing Airspace: Simulation Of Commercial Space Horizontal Launch Impacts On Airlines And Finding Solutions, Janet K. Tinoco, Chunyan Yu, Rodrigo Firmo, Carlos Alberto Castro, Mohammad Moallemi, Ryan Babb

Publications

Commercial space transportation is becoming more affordable and accessible. Consequently, we expect to see significant expansion of commercial space launch activities in the coming decade. As space vehicles travel through airspace during the launch and re-entry stages, they potentially disrupt the regular operations of traditional users. This paper estimates the potential economic and operational impacts of commercial space horizontal launch activities on airlines under various launch scenarios using predictive fast-time simulation modeling, focusing on Cecil Air and Space Port in Jacksonville (Florida) and the rules governing the national airspace system (NAS) in the United States. Our results indicate that the …

The Economic Impact Of Covid-19 In Tyler, Manuel Reyes-Loya

Hibbs Brief

In this issue of the Hibbs Brief, we discuss the economic impact of COVID-19 in Tyler during 2020, using recently released figures on Gross Domestic Product (GDP) as a measure of economic performance.

The Economic Impact Of Paradise Cove Aquatic Center In Richmond, Kentucky, Laruen Kilburn, Michael J. Bradley, James N. Maples

Faculty Publications - Tourism

One of the most effective ways for rural communities to improve the local economy is by exploring opportunities related to tourism. When communities focus their resources on expanding and improving the tourism industry, it leads to additional opportunities for these communities to increase their revenue, provide jobs and revitalize the local economy. Like many other agencies, the Richmond Parks and Recreation Department has gradually expanded the tourism industry within the City of Richmond in Madison County, Kentucky. To help continue the expansion of this industry, Paradise Cove Aquatic Center opened in 2008. This decision was made because waterparks were becoming …

Covid–19 Cases In Tyler Msa, East Texas And Overall Texas, Manuel Reyes-Loya

Hibbs Brief

In this issue of the Hibbs Brief, the continued impacts of COVID-19 on Texas and East Texas counties are discussed. While the coronavirus pandemic surpasses 116,000 deaths in the U.S., the overall state of Texas in general and Tyler MSA, in particular, have experienced a second wave of COVID-19 cases in May and June.

Tyler Msa Loses $220.5 Million, Longview Msa Loses $168.6 Million To Stay-At-Home Orders, Manuel Reyes-Loya

Hibbs Brief

In this special issue of the Hibbs Brief, the impacts of limits on economic activity as a part of the effort to slow the spread of COVID-19 are calculated. Both Tyler Metropolitican Statistical Area and Longview MSA suffered nine-figure losses over roughly a one-month period.

The University Of Texas At Tyler Economic Impact On Texas (5-Year Graduates' Income), Manuel Reyes-Loya

Hibbs Brief

In this issue of the Hibbs Brief we discuss the economic impact of University of Texas at Tyler graduates’ income. This is one of several economic engines that UT Tyler provides to the city of Tyler, East Texas and the entire state of Texas.

Estimating The Economic Impact Of Vacation Home Rentals In Florida, Robertico R. Croes, Manuel A. Rivera, Kelly J. Semrad, Jorge Ridderstaat, Valeriya Shapoval, Mehmet Altin

Dick Pope Sr. Institute Publications

This report takes an in-depth look at the economic impact of the Florida vacation rental home industry and its ripple effects across the state. It includes an estimate of the magnitude of the industry's impact on Florida's economy as well as profiles of the main stakeholders who generate this impact.

The report focuses on the economic impact of the vacation rental home industry in 25 Florida counties selected by the client, Florida Realtors® (Escambia, Santa Rosa, Okaloosa, Walton, Bay, Gulf, Franklin, Nassau, Duval, Pinellas, Hillsborough, Manatee, Sarasota, Charlotte, Lee, Collier, Monroe, Miami-Dade, Broward, Palm Beach, Orange, Osceola, Brevard, Volusia, and …

Scenario Economic Impact & Marketing Implications For South Texas Saltwater Fishing Tournaments, Yeong Nain Chi, Marvin Lovett

Marketing Faculty Publications and Presentations

The main purpose of this study is to employ scenario analysis to estimate the economic impact of the expenditures of anglers who participate in saltwater fishing tournaments in Port Isabel/South Padre Island, Texas. Secondly, this study discusses the implications for initiating, maintaining, and/or expanding marketing communications, including event marketing and event sponsorships, to promote saltwater fishing tournaments in South Texas. This study also evaluates impacts on adjacent areas, identifies potential uses for economic impact information, and provides justification for investment and support of programs related to the growing needs of saltwater recreational fisheries management. To accomplish this study, the IMPLAN …

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 …

The Economic Impact Of The Huron River, Grand Valley State University, Paul Isely, Christian Glupker, Erik E. Nordman, Julie M. Cowie, Hailey Lamay

Other Faculty Publications

The Huron River and Huron River Water Trail are estimated to have the following economic impact on the five-county region in which they are located:

• $53.5M in annual economic output, which is the sum of $29.9M in direct spending and $23.6M in indirect and induced spending
• 641 local jobs added to the region
• $628M in added property value
• $150M in annual environmental value
• 2.6M visitor days

The Economic Impact Of The Frederik Meijer Gardens And Sculpture Park, Grand Valley State University, Christian Glupker, Paul Isely

Other Faculty Publications

The Frederik Meijer Gardens and Sculpture Park supports or contributes: • 804 jobs in Kent County annually

• A $75.2 million economic output annually
• Visitors from outside the county who directly spend $19.6 million at businesses around Kent County annually.
• Construction that created 39 jobs during the last year.
• 86% of the visitor spending is the result spending by individuals that do not live in Kent County.
• Nonresidents spent an average $129 per group outside the venue during their visit to Meijer Gardens while in Kent County.

Has The Usage Of Precision Agriculture Technologies Actually Led To Increased Profits For Nebraska Producers?, Michael H. Castle

Department of Agricultural Economics: Dissertations, Theses, and Student Research

An ever-increasing global demand for food, coupled with increasingly volatile commodity prices have charged producers with the task of becoming more efficient. As such, technologies aimed at producing more with less are continually being developed and marketed to producers. However, whether or not these expensive new technologies have resulted in improved profitability is still unknown, as the vast majority of studies showing their impact on profitability have been performed using hypothetical farms and simulations. These studies have shown the potential for increases in profitability from use, but their impact in the real world is still uncertain.

This project uses various …

Going For The Gold: The Economics Of The Olympics, Victor Matheson, Robert Baade

Economics Department Working Papers

In this paper, we explore the costs and benefits of hosting the Olympic Games. On the cost side, there are three major categories: general infrastructure such as transportation and housing to accommodate athletes and fans; specific sports infrastructure required for competition venues; and operational costs, including general administration as well as the opening and closing ceremony and security. Three major categories of benefits also exist: the short-run benefits of tourist spending during the Games; the long-run benefits or the "Olympic legacy" which might include improvements in infrastructure and increased trade, foreign investment, or tourism after the Games; and intangible benefits …

A Compensating Differential Approach To Valuing The Social Benefit Of Minor League Baseball, Nola Agha, Dennis Coates

Sport Management

This research utilizes a compensating differential framework to measure the social benefits of minor league baseball teams. Consistent with findings at the major league level, individual housing observations from 138 metropolitan areas between 1993 and 2005 show that affiliated teams are associated with a significant 5.7% increase in rents in mid-sized markets ranging from 0.4 to 1.4 million people. On the other hand, independent teams and stadiums are associated with insignificant effects on rents. The positive effect of affiliated minor league teams suggests they are a valuable urban amenity that can contribute to local quality of life.

A Theoretical Comparison Of The Economic Impact Of Large And Small Events, Nola Agha, M Taks

Sport Management

In response to the increasing debate on the relative worth of small events compared to large events, we create a theoretical model to determine whether smaller events are more likely to create positive economic impact. First, event size and city size are redefined as continuums of resources. The concepts of event resource demand (ERD) and city resource supply (CRS) are introduced, allowing for a joint analysis of supply and demand. When local economic conditions are brought into the analysis, the framework determines how a city resource deficiency or surplus affects the economic impact of an event. This resource-based approach assists …

The Internationalization Benefits Of A Music Festival: The Case Of The Curacao North Sea Jazz Festival, Manuel Rivera, Kelly Semrad, Robertico Croes

Rosen Faculty Scholarship and Creative Works

A longitudinal research design was used to assess the potential internationalization benefits that may occur when hosting a music festival in a small island destination. A macroeconomic analysis was used to assess these benefits. The results reveal that a music festival may make a positive economic impact and provide internationalization benefits for a small economy under the eclectic paradigm and the OLI Framework. The study contributes to the understanding of music festivals as a strategic resource to enhance the competitiveness of small island destinations.

Economic Contribution Of Nonresident Travel Spending In Montana Travel Regions And Counties: 2012-2013, Kara Grau

Institute for Tourism and Recreation Research Publications

Money spent by those traveling to and through Montana has an effect not only on the businesses where spending occurs, but it ripples throughout the state’s economy, as well. Statewide, spending by nonresidents (averaged over two years) totaled $3.47 billion. This report details the methods and results of the economic impact analyses for each of Montana’s travel regions, as well as analyses for counties in which nonresident travelers spent approximately $50 million or more.

The Impact Of Attitudinal Ambivalence On Weight Loss Decisions: Consequences And Mitigating Factors, My Bui, Courtney M. Droms, Georgiana Craciun

Marketing & Business Law Faculty Works

This research takes a new look at individuals' attitudes and intentions towards losing weight. Study 1 examines the relationship among those interested in losing weight and individual self-evaluative ambivalence on attitude towards trying to achieve a weight loss goal and the intentions to achieve the weight loss goal. For Study 2, a between-subjects experimental design, where attitudinal ambivalence and prior outcome feedback were manipulated and self-efficacy was measured, is conducted to examine attitude towards eating healthier and intention to change eating behaviours. Findings across the two studies show that attitudinal ambivalence about the self and the individual's abilities and motivation …

Structural Relationship Among Loss Aversion, Emotion, And Sport Consumption: The Case Of Ncaa Men’S Basketball Tournament Bracketology, Brian H. Yim, Kevin K. Byon, Thomas A. Baker

Association of Marketing Theory and Practice Proceedings 2014

The NCAA Men’s Division I Basketball Championship, known to fans as March Madness, is one of the most popular annual sporting events in the United States. Despite its economic impact on the sports industry, relative few studies have examined phenomena surrounding the March Madness bracket. Some (e.g., Kaplan &Garstka, 2001; McCrea &Hirt, 2009) have focused on how to make accurate predictions for the tournament. However, sports marketers need to understand why and how participants make decisions when filling out their brackets, and no studies have investigated this behavior. To fill this void, the current project was conducted to explain the …