The growth effects of sport franchises,stadia, and arenas

This paper investigates the relationship between professional sports franchises and venues and real per capita personal income in 37 standard metropolitan statistical areas in the United States over the period 1969 to 1994. Our empirical framework accounts for the entry and departure of professional football, basketball, and baseball franchises; the construction of arenas and stadia; and other sports related factors over this time period. In contrast to other existing studies, we find evidence that some professional sports franchises reduce the level of per capita personal income in metropolitan areas and have no effect on the growth in per capita income, casting doubt on the ability of a new sports franchise or facility to spur economic growth. We also find evidence that results obtained from estimating reduced‐form relationships, a common practice in the literature, are not robust to alternative reduced‐form specifications. © 1999 by the Association for Public Policy Analysis and Management.     

The growing commercialism of zoos and aquariums

Although the mission of zoos and aquariums (species preservation, exhibition, education, and research) has not changed, the weights attached to their multiple goals and the means to accomplish them have. In particular, these institutions have undertaken costly programs to preserve endangered species. Through an examination of alternative revenue sources we demonstrate that institutions accredited by the American Zoo and Aquarium Association (AZA) have experienced no change in the structure of demand. Although more money could be raised through higher admission fees, these institutions have not exploited this alternative to full advantage, despite the Reagan-era tax rate reductions that resulted in fewer donations. Almost all the limited subsidies zoos and aquariums receive come from local governments; federal subsidies (through the Endangered Species Act) have been allocated to purchase critical habitat in the wild. Zoos and aquariums have turned increasingly to ancillary commercial activity such as food service and gift shops.     

Commercialism in nonprofit social service associations: Its character,significance, and rationale

This article examines the commercial practices and sales income of national nonprofit social services associations in the United States. The associations span the fields of youth services, health charities, community and recreation services, and advocacy programs for older Americans and children. The commercial ventures of these associations reflect an important trend in the non-profit social services sector, which has implications for taxation, financing,and regulatory policies. The conceptual framework that defines nonprofit organizations as multiproduct economic organizations helps illuminate the relationship of commercial sales to the pursuit of the mission. In general, the commercial initiatives of the associations examined are not solely revenue-producing ventures in that they make direct contributions to the mission as well; indeed, pains are taken by association leaders to avoid activities that would damage their associations’ abilities to pursue their missions. Statistical analysis of the sales revenues of local affiliates of one association—the Jewish Community Centers Association—demonstrates that losses of external income from grants and contributions stimulate sales income whereas increases in memberships expand the markets within which these organizations can generate revenue from user fees.     

The competitive incentives of vertically integrated local exchange carriers: An economic and policy analysis

The U.S. Congress passed sweeping telecommunications reform legislation in 1996 that will enable the Regional Bell Operating Companies (RBOCs) to enter the interLATA long-distance market once certain conditions are met. This legislation empowers the state public service commissions, the Federal Communications Commission and the Justice Department to determine collectively when RBOC entry into interLATA long-distance markets satisfies the public interest. This article reveals that as long as RBOC long-distance market shares remain below certain critical levels, the RBOCs do not have the incentives (despite having the opportunity) to discriminate against their downstream competitors. These findings suggest that a public policy focused exclusively on eliminating the opportunity to discriminate may needlessly delay RBOC entry into interLATA markets and thereby deprive consumers of the benefits of enhanced competition.     

Do government incentives attract and retain international investment? A study of foreign-owned firms in North Carolina

Policy Sciences - In an era of strong global competition, national, state, and localgovernments are vying to attract and retain investment by international firmsby increasing the range and value of...     

The application of venture analysis to public policy decisions: A case study of photovoltaics

Venture analysis is a group of analytical techniques normally used by the private sector to assist in major capital decisions. The approach can be applied to public policy decisions in those cases where changing private sector investment decisions are the central focus. A case study concerning a temporary subsidy to an emerging energy technology is reviewed. Major strengths of the approach are its use of numerous data- and opinion-gathering techniques and its explicit treatment of market and supply uncertainties. The major weakness is its lack of ability to handle those social costs and benefits for which no market exists. Implications for other policy studies are also presented.