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ASSESSING THE ECONOMIC JUSTIFICATION FOR GOVERNMENT INVOLVEMENT IN SPORTS FACILITIES AND EVENTS IN NEW ZEALAND

Samuel Andrew Richardson 2010

ABSTRACT

DEDICATION

ACKNOWLEDGEMENTS

TABLE OF CONTENTS
ABSTRACT ..............................................................................................................................ii DEDICATION ........................................................................................................................ iii ACKNOWLEDGEMENTS .....................................................................................................iv TABLE OF CONTENTS.......................................................................................................... v TABLES ...................................................................................................................................ix FIGURES .................................................................................................................................xi 1 THESIS INTRODUCTION ................................................................................................1

1.2.1. Internationally Oriented Events Hosted in New Zealand ..............................2 1.2.2. The Major Events Development Fund....................................................................3 1.2.3. Facility Construction in New Zealand ...................................................................5

2 LITERATURE REVIEW................................................................................................. 11

2.2.1. Income Generation..................................................................................................... 14

2.2.2. Job Creation .................................................................................................................. 16 2.2.3. Earnings......................................................................................................................... 18 2.2.5. Real Estate Values...................................................................................................... 18 2.2.6. Mega events ................................................................................................................. 19 2.2.7. Intangibles .................................................................................................................... 22 2.3.1. Economic Impact Analysis ...................................................................................... 25 2.3.2. Computable General Equilibrium Analysis....................................................... 30 2.3.3. Ex Post Econometric Analysis ............................................................................... 30

3 METHODOLOGY............................................................................................................ 39

3.3.1. Ex Post Analysis of Economic Impacts............................................................... 43 3.3.2. Modelling the Strategic Nature of Facility and Event Subsidisation ..... 45 3.3.3. Measuring the Consumers Surplus Benefits of Provincial Rugby Attendance................................................................................................................................ 45 4 WESTPAC STADIUM: THE IMPACT ON THE WELLINGTON REGIONAL ECONOMY ............................................................................................................................ 47

4.2.1. United States ................................................................................................................ 48 4.2.2. Europe ............................................................................................................................ 50 4.2.3. Australia ........................................................................................................................ 51 4.3.1. The First Five Years: An Evaluation .................................................................... 57 4.4.1. Employment Models .................................................................................................. 60

4.4.2 Data .................................................................................................................................. 63 4.5.1. Facility Construction Effects .................................................................................. 67 4.5.2. Post Construction Stadium Activity: The First Five Years ..........................70

5 FACILITY CONSTRUCTION AND THE HOSTING OF INTERNATIONAL EVENTS IN NEW ZEALAND: EX POST IMPACTS ON LOCAL ECONOMIES .......................... 75

5.4.1. Facility Construction Models ................................................................................. 86 5.4.2. Event Models ................................................................................................................ 89 5.4.3. Data ................................................................................................................................. 98 5.5.1. The Effect of Facility Construction on Local Economies .......................... 101 5.5.2. The Effect of International Events on Local Economies........................... 112 5.5.3. Events, Facilities and Local Economies: Does Location Matter? .......... 118

6 THE SUBSIDISATION OF EVENTS AND FACILITIES: A GAME THEORY APPROACH ........................................................................................................................129

6.5.1. Identical Cities.......................................................................................................... 137 6.5.2. Large City versus Small City................................................................................ 142

7 INTANGIBLE BENEFITS AND THEIR ROLE IN LOCAL GOVERNMENT FUNDING OF SPORTS FACILITIES: A CASE STUDY OF WANGANUI RUGBY ....149

7.5.1. Data .............................................................................................................................. 159

8 CONCLUSION ................................................................................................................179

8.2.1. Major Findings of the Research ......................................................................... 179 8.2.2. The Sequential Development of Sports Facilities: How the Research Informs the Framework.................................................................................................... 182 8.2.3. Policy Implications ................................................................................................. 184

REFERENCES.....................................................................................................................190

TABLES

FIGURES

1
THESIS INTRODUCTION
1.1. INTRODUCTION

1.2. THE NEW ZEALAND SPORTING LANDSCAPE

1.2.1. Internationally Oriented Events Hosted in New Zealand

1.2.2. The Major Events Development Fund

Figure 1.1: Criteria for Major Events Development Fund Applications

One Off Benefits

Legacy Benefits

Event Capability Benefits

1.2.3. Facility Construction in New Zealand

1.3. RESEARCH OBJECTIVES AND QUESTIONS

1.4. WESTPAC STADIUM: THE IMPACT ON THE WELLINGTON REGIONAL ECONOMY

1.5. FACILITY CONSTRUCTION AND THE HOSTING OF INTERNATIONAL EVENTS IN NEW ZEALAND: EX POST IMPACTS ON LOCAL ECONOMIES

1.6. THE SUBSIDISATION OF EVENTS AND FACILITIES: A GAME THEORY APPROACH

1.7. INTANGIBLE BENEFITS AND THEIR ROLE IN GOVERNMENT FUNDING OF SPORTS FACILITIES: A CASE STUDY OF WANGANUI RUGBY

1.8. THE ORGANISATION OF THE THESIS

2
LITERATURE REVIEW
2.1. INTRODUCTION

2.2. INDEPENDENT RESEARCH INTO ECONOMIC OUTCOMES OF SPORTS FACILITIES AND EVENTS

2.2.1. Income Generation

2.2.2. Job Creation

2.2.3. Earnings

2.2.5. Real Estate Values

2.2.6. Mega events

2.2.7. Intangibles

2.3. EX ANTE VERSUS EX POST ANALYSIS OF SPORTS FACILITIES AND EVENTS

2.3.1. Economic Impact Analysis

2.3.2. Computable General Equilibrium Analysis

2.3.3. Ex Post Econometric Analysis

2.4. THE ECONOMIC JUSTIFICATION FOR GOVERNMENT INVOLVEMENT IN SPORTS FACILITIES

AND EVENTS: WHAT SHOULD BE CONSIDERED?

Figure 2.1: The Psychic Income Paradigm

2.5. SUMMARY

3
METHODOLOGY
3.1. INTRODUCTION

3.2 CONCEPTUAL FRAMEWORK

Figure 3.1: A Conceptual Framework for Facility Development

Catalyst for Change

Legacy Stage

Construction Stage

Event(s) Stage

3.3. METHODS ADOPTED: A BRIEF SUMMARY

3.3.1. Ex Post Analysis of Economic Impacts

3.3.2. Modelling the Strategic Nature of Facility and Event Subsidisation

3.3.3. Measuring the Consumers Surplus Benefits of Provincial Rugby Attendance

4
WESTPAC STADIUM: THE IMPACT ON THE WELLINGTON REGIONAL ECONOMY
4.1. INTRODUCTION

4.2. FACILITIES: THE INTERNATIONAL EXPERIENCE

4.2.1. United States

4.2.2. Europe

4.2.3. Australia

4.3. WESTPAC STADIUM: THE CATALYST FOR CHANGE

Table 4.1: Allocation of Components Contracts for Regional Stadium (December 1998) Local Area Value of contract work

Table 4.2: Annual Attendance at Westpac Stadium, 2000 2009 Year Attendance

Figure 4.1: Net Operating Surpluses ($m): Westpac Stadium, 2000 2009
3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

4.3.1. The First Five Years: An Evaluation

Table 4.3: Predicted Ex Ante Impacts Versus Estimated Ex Post Impacts 1996 estimate (annual) 2000 2004 (average) Difference

Table 4.4: Estimated Employment Effects on Wellington Region, 2000 2004 Year Estimated Total Employment Effect FTE (December quarter) Percentage of employment

4.4. MODELS AND DATA

4.4.1. Employment Models

FTE t
4

0 5

FTE _ NZ
6

LFt

RAWEt Qt
7

INTt

STADt

TEPAPAt

TIME et

FTEt
4

0 5 7

FTE _ NZ

LFt

RAWEt
6

INTt Qt

STADt

POSTSTADt

TEPAPAt

TIME et

FTEt FTE_NZt LFt RAWEt INTt STADt TEPAPAt Qt POSTSTADt TIME et

POSTSTADt FIRST_FIVE_YEARS

STADt POSTSTADt

FTE_NZ RAWE FTE_NZ GFTE_NZ GRAWE LF

LF RAWE DLF FTE

INT

FTE, GFTE_NZ,

GRAWE d99Q3

FTE t
4 8

0 5

GFTE _ NZ
6

GRAWEt Qt

DLFt
7

INTt

STADt

TEPAPAt

TIME

d 99Q3 et

FTEt
4

0 5 7

GFTE _ NZ

GRAWEt
6

DLFt

INTt Qt

STADt
8

POSTSTADt d 99Q3 et

TEPAPAt

TIME

4.4.2 Data

Table 4.5: Variable Definitions and Summary Statistics Infoshare (Statistics New Zealand) source category: Deviation Mean Standard Minimum Maximum

Variable

Definition

Table 4.6: Unit Root Tests for Stationarity Variable Trend and intercept p value

4.5. RESULTS

4.5.1. Facility Construction Effects

Table 4.7: Stadium Construction and Employment

Estimated Parameters

Variable

Coefficient

Prob.

Coefficient

Prob.

4.5.2. Post Construction Stadium Activity: The First Five Years

POSTSTADt FIRST_FIVE_YEARS YEAR_1, YEAR_2, YEAR_3, YEAR_4 YEAR_5

GRAWE POSTSTADt FIRST_FIVE_YEARS STADt STAD FIRST_FIVE_YEARS

Table 4.8: Post Construction Activity and Employment

Estimated Parameters

Variable

Coefficient

Prob.

Coefficient

Prob.

YEAR_1 YEAR_1 YEAR_2 YEAR_4 YEAR_4 STAD YEAR STAD YEAR_5 YEAR_5 YEAR_4 YEAR_3

YEAR_5

YEAR

4.6. CONCLUSIONS

5
FACILITY CONSTRUCTION AND THE HOSTING OF INTERNATIONAL EVENTS IN NEW ZEALAND: EX POST IMPACTS ON LOCAL ECONOMIES
5.1. INTRODUCTION

5.2. FACILITY DEVELOPMENTS IN NEW ZEALAND

Table 5.1: Stadium Construction Details in the North Island, New Zealand, 1997 2009.
Stadium period work Type of Construction Construction Value of construction Public funding details

City

Table 5.2: Stadium Construction Details in the South Island, New Zealand 1997 2009.
Stadium opened/upgraded work Type of Construction Year Value of construction Public funding details

City

5.3. THE EVENTS

Table 5.3: Sporting Mega Events hosted in New Zealand, 1997 2009 Event Date(s) of Event Host City

Table 5.4: Host cities for 1999 FIFA U 17 Soccer World Championships (Men) City Games Hosted

Table 5.5: Host cities for 2005 British and Irish Lions Tour City Games Hosted

Table 5.6: Host cities for 2008 FIFA U 17 Soccer World Championships (Women) City Games Hosted

Table 5.7: Economic Impacts of Selected Major New Zealand Sports Events Year Event Economic Impact (NZ$ million) Real GDP (production, NZ$ million) Percent of GDP

5.4. MODELS AND DATA

5.4.1. Facility Construction Models

t t t t t i t

SHARE_AFF SHARE_TTS

SHARE_MANUF SHARE_SERV

NM

LQ_EMP_CONST

LD_RRET_SALES

FCON_TOTAL STAD ARENA MOTOR VELO

5.4.2. Event Models

Table 5.8: Location specific dependent and independent variables ( Description Industry category
t

) Minimum Maximum

Variable Infometrics Deviation Mean Standard

Table 5.9: Facility construction specific variables ( Description type Deviation Facility Mean Standard Minimum

) Maximum

Variable

t t t t t t t t t t

EVENTit

Table 5.10: Location specific dependent and independent variables (

Description Mean Deviation Industry category t Infometrics Standard Minimum

)
Maximum

Variable

Table 5.11: Event specific variables ( Description Deviation Mean Standard Minimum

) Maximum

Variable(s)

5.4.3. Data

Table 5.12: Territorial Local Authorities Used in Model Estimation Facility Construction TLAs Event TLAs

Table 5.13: Augmented Dickey Fuller (ADF) Panel Unit Root Tests Variable Statistic (Fisher chi square) Null: Unit root (assumes individual unit root process) Prob. Cross sections Obs.

5.5. RESULTS

5.5.1. The Effect of Facility Construction on Local Economies

Table 5.14: Construction Sector Employment Results (FCON)

Equation 5.1: Pooled OLS 690 observations 15 cross sectional units Time series length = 46 Dependent variable: EMP_CONST

Parameter Estimates

Variable

Coefficient

p value

Equation 5.1: Panel Least Squares, Cross section and period fixed effects 690 observations 15 cross sectional units Time series length = 46 Dependent variable: EMP_CONST White diagonal standard errors Coefficient p value

Test

Test statistic

P value

F Test statistic

P value

Table 5.15: Construction Sector Employment Results (Facility Types)

Equation 5.1: Pooled OLS 690 observations 15 cross sectional units Time series length = 46 Dependent variable: EMP_CONST

Parameter Estimates

Variable

Coefficient

p value

Equation 5.1: Panel Least Squares, Cross section and period fixed effects 690 observations 15 cross sectional units Time series length = 46 Dependent variable: EMP_CONST White diagonal standard errors Coefficient p value

Test

Test statistic

P value

F Test statistic

P value

Table 5.16: Construction Sector Employment Results (Individual Facilities)

Equation 5.1: Pooled OLS 690 observations 15 cross sectional units Time series length = 46 Dependent variable: EMP_CONST

Parameter Estimates

Variable

Coefficient

p value

Equation 5.1: Panel Least Squares, Cross section and period fixed effects 690 observations 15 cross sectional units Time series length = 46 Dependent variable: EMP_CONST White diagonal standard errors Coefficient p value

Test

Test statistic

P value

F Test statistic

P value

Table 5.17: Real GDP results

Parameter Estimates (FCON)

Equation 5.2: Panel Least Squares, Cross section and period fixed effects 690 observations 15 cross sectional units Time series length = 46 Dependent variable: GDP White diagonal standard errors Coefficient p value

Equation 5.2: Pooled OLS 690 observations 15 cross sectional units Time series length = 46 Dependent variable: GDP

Variable

Coefficient

p value

Test

Test statistic

P value

F Test statistic

P value

Table 5.18: Real GDP Results

Parameter Estimates (Facility Types)

Equation 2: Panel Least Squares, Cross section and period fixed effects 690 observations 15 cross sectional units Time series length = 46 Dependent variable: GDP White diagonal standard errors Coefficient p value

Equation 5.2: Pooled OLS 690 observations 15 cross sectional units Time series length = 46 Dependent variable: GDP

Variable

Coefficient

p value

Test

Test statistic

P value

F Test statistic

P value

Table 5.19: Real GDP Results

Parameter Estimates (Individual Facilities)

Equation 5.2: Panel Least Squares, Cross section and period fixed effects 690 observations 15 cross sectional units Time series length = 46 Dependent variable: GDP White diagonal standard errors Coefficient p value

Equation 5.2: Pooled OLS 690 observations 15 cross sectional units Time series length = 46 Dependent variable: GDP

Variable

Coefficient

p value

Test

Test statistic

P value

F Test statistic

P value

5.5.2. The Effect of International Events on Local Economies

Table 5.20: Accommodation, Cafs and Restaurants Employment Results Parameter Estimates (Events)
Equation 5.4: Pooled OLS 736 observations 16 cross sectional units Time series length = 46 Dependent variable: EMP_ACR Variable Coefficient p value Equation 5.4: Panel Least Squares, Cross section and period fixed effects 736 observations 16 cross sectional units Time series length = 46 Dependent variable: EMP_ACR Coefficient p value

Test

Test statistic

P value

F Test statistic

P value

Table 5.21: GDP Results

Parameter Estimates (Events)

Equation 5.5: Panel Least Squares, Cross section and period fixed effects 736 observations 16 cross sectional units Time series length = 46 Dependent variable: GDP Coefficient p value

Equation 5.5: Pooled OLS 736 observations 16 cross sectional units Time series length = 46 Dependent variable: GDP Variable Coefficient p value

Test

Test statistic

P value

F Test statistic

P value

5.5.3. Events, Facilities and Local Economies: Does Location Matter?

X_DIST X

Table 5.22: Accommodation, Cafs and Restaurants Employment Results Parameter Estimates (Distance Decay)
Equation 5.6: Pooled OLS 736 observations 16 cross sectional units Time series length = 46 Dependent variable: EMP_ACR Variable Coefficient p value Equation 5.6: Panel Least Squares, Cross section & period fixed effects 736 observations 16 cross sectional units Time series length = 46 Dependent variable: EMP_ACR Coefficient p value

Test

Test statistic

P value

F Test statistic

P value

Table 5.23: GDP results

Parameter Estimates (Distance Decay)

Equation 5.7: Panel Least Squares, Cross section and period fixed effects 736 observations 16 cross sectional units Time series length = 46 Dependent variable: GDP Coefficient p value

Equation 5.7: Pooled OLS 736 observations 16 cross sectional units Time series length = 46 Dependent variable: GDP Variable Coefficient p value

Test

Test statistic

P value

F Test statistic

P value

X_CAP X_DIST*CAP

Table 5.24: Accommodation, Cafs and Restaurants Employment Results Parameter Estimates (Amended Distance Decay)
Equation 5.6: Pooled OLS 736 observations 16 cross sectional units Time series length = 46 Dependent variable: EMP_ACR Variable Coefficient p value Equation 5.6: Panel Least Squares, Cross section & period fixed effects 736 observations 16 cross sectional units Time series length = 46 Dependent variable: EMP_ACR Coefficient p value

Test

Test statistic

P value

F Test statistic

P value

Table 5.25: GDP Results

Parameter Estimates (Amended Distance Decay)

Equation 5.7: Panel Least Squares, Cross section & period fixed effects 736 observations 16 cross sectional units Time series length = 46 Dependent variable: GDP Coefficient p value

Equation 5.7: Pooled OLS 736 observations 16 cross sectional units Time series length = 46 Dependent variable: GDP Variable Coefficient p value

Test

Test statistic

P value

F Test statistic

P value

Table 5.26: Effective Distance Parameter Estimates and Critical Capacities

Model Event Effective Distance Coefficient Critical Facility Capacity (positive economic impact)

5.6. CONCLUSIONS

6
THE SUBSIDISATION OF EVENTS AND FACILITIES: A GAME THEORY APPROACH
6.1. INTRODUCTION

6.2. BACKGROUND

6.3. LITERATURE REVIEW

6.4 THEORETICAL MODEL

x y E

Bx

B x ( E x , E y , Ax )
Ex Ey Ex x x Ax Ey y Ax x

Bx

TB x ( E x , E y , Ax )

IB x ( E x , Ax )

TB IB

x Cx y x Cx Sx x

Cx

C x ( E x , Ax )

S x (E x )

Cx

Sx .

NB x

TB x ( E x , E y , Ax )

IB x ( E x , Ax ) [C x ( Ax , E x )

S x ( E x )]

NB y

TB y ( E y , E x , A y )

IB y ( E y , A y ) [C y ( A y ) E y

S y ( E y )]

Figure 6.1: Net Benefits of Event Hosting

y x x: IB x Sx, y: IBy Sy x: TBx, y: TBx + IBy Sy x: TBy + IBx Sx, y: TBy x y

Ex

Ey

y x x

x y

6.5. ESTABLISHING THRESHOLDS FOR SUBSIDISATION

x Ay

Ax

Ay

y Ax

6.5.1. Identical Cities

Let s call them Auckland and Wellington) without a Wellington race meaning that the resulting effect on Wellington is a loss of $10m in tangible benefits Auckland race with the resulting effect on Auckland being a loss of $10m in tangible benefits Up to this point, we can think of this example as a zero sum game without an

which implies that there is a negative net benefit associated with not hosting the event of 20% of the city s tangible benefits that is, $10m $8m

Figure 6.2: Net Benefits without a Subsidy (Lally s Example)

Figure 6.3: Net Benefits with a $6m Subsidy (Lally s Example)

Figure 6.4: Net Benefits with an $11m Subsidy (Lally s Example)

Figure 6.5: Net Benefits with a $13m Subsidy (Lally s Example)

Aw TB w IB w IB a 0

Aa TB a

Sw TB a Sw

TB a Sw NB w

(a) 1
NB w

(a) 1

(a) 0

Sa TB a Sa

TBa Sa NBa

(w) 1
NB a

(w) 1

(w) 0

6.5.2. Large City versus Small City

Figure 6.6: Net benefits without a Subsidy (Large (A) vs Small (W) city)

Figure 6.7: Net Benefits with an $8m Subsidy (Large [A] vs Small [W] City)

Figure 6.8: Net Benefits with a $15m Subsidy (Large [A] vs Small [W] City)

Figure 6.9: Net Benefits with a $25m Subsidy (Large [A] vs Small [W] City)

Aw Sw Sa S

Aa

TBw

TBa

IBw

IB a

TBw S S S NB a TBa NBw

(a) 1, (w) 1 (a) 1, (w) 1 (a) 1, (w) 1 (a) 0, (w) 1 (a) 0, (w) 0

TB w NBa TBa S

NBw

6.5. CONCLUSIONS

7
INTANGIBLE BENEFITS AND THEIR ROLE IN LOCAL GOVERNMENT FUNDING OF SPORTS FACILITIES: A CASE STUDY OF WANGANUI RUGBY
7.1. INTRODUCTION

7. 2. RUGBY IN WANGANUI: A BRIEF HISTORY

7.3. A BRIEF HISTORY OF THE NATIONAL PROVINCIAL CHAMPIONSHIP

7.4. LITERATURE REVIEW

7.5. MODEL AND DATA

ATTit

E X it

CP X it

it

CSC X it

eit
i t

ATTit

Figure 7.1: Average Attendance at Games in Wanganui, 1972 1994

3000 2500 2000 1500 1000 500 0 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994

E X it

REAL_PRICE DIST_HRS WMRU SKY

WMRU

SKY

CP X it

ATTi 1,t

CSC X it

TARA DIV2NI DIV2 DIV3 DIV3F PROMPY INT_T1 RELPY PRENPC NPC1 NPC2 NPC3 NPC4 DIV3SF

i i

t t

TARA

Figure 7.2: Attendance at Wanganui vs Taranaki (Queen s Birthday) Games

8000 7000 6000 5000 4000 3000 2000 1000 0 Jun 72 Jun 75 Jun 78 Jun 81 Jun 84 Jun 87 Jun 90 Jun 93

DIV2NI, DIV2

DIV3

PROMPY

RELPY

DIV3SF

DIV3F

INT_T1

PRENPC NPC1 NPC2 NPC3 PRENPC NPC

NPC4

TIME GAME

MWK

ATTit
1

1 2

REAL _ PRICEit
3

DIST _ HRSit
4

3 5

WMRU it
6

ATTi ,t

TARAit DIV 3 Fit NPC 4t

DIV 2 NI it
8 14

DIV 2 it
9

DIV 3it
10

INT _ T 1it
11

DIV 3SFit
12

PROMPYt SKYt
15

RELPYt
16

PRENPCt
17

NPC1t

NPC 3t

13

TIMEt
NPC2

GAMEt

MWK t

eit

7.5.1. Data

Table 7.1: Variables, Definitions, Source and Summary Statistics Data Source Deviation Mean Standard Minimum Maximum

Variable

Definition

ATT

REAL_PRICE

DIST_HRS

WMRU

TARA

INT_T1

PRENPC

NPC1

REAL_PRICE

NPC2

NPC3

NPC4

DIV2NI

DIV2

DIV3

DIV3SF

DIV3F

PROMPY

RELPY

SKY

MWK

Table 7.2: Unit Root Tests of Time Series Variables Variable ATT REAL_PRICE DIST_HRS WMRU D_WMRU
.

H0: Constant, Trend Test Statistic

p value

ATT REAL_PRICE D_WMRU

DIST_HRS

WMRU WMRU

7.6. RESULTS

Table 7.3: Model Estimation: Attendance

Model 7.1 (Linear): Dependent Variable: ATT Method: Least Squares Included observations: 169 after adjustments (White Heteroskedasticity Consistent Standard Errors & Covariance) Coefficient p value Coefficient p value Model 7.2 (Lin Log): Dependent Variable: ATT Method: Least Squares Included observations: 169 after adjustments (White Heteroskedasticity Consistent Standard Errors & Covariance)

Variable

Model 7.3 (Semi Log): Dependent Variable: LOG_ATT Method: Least Squares Included observations: 169 after adjustments (White Heteroskedasticity Consistent Standard Errors & Covariance) Coefficient p value

Model 7.4 (Log Log): Dependent Variable: LOG_ATT Method: Lt Squares Included observations: 169 after adjustments (White Heteroskedasticity Consistent Standard Errors & Covariance) Coefficient p value

Test P value P value P value

Test statistic

Test statistic

Test statistic

Test statistic

P value

Table 7.4: Estimated Price Elasticities of Demand 31 Model 7.1 (Linear) Model 7.2 (Lin Log) Model 7.3 (Semi Log) Model 7.4 (Log Log)

(REAL_PRICE)/ATT

/ATT

(REAL_PRICE)

PRENPC NPC1 NPC4 PRENPC NPC3

DIV2NI DIV2 DIV3

DIV2

SKY GAME

7.7. MEASUREMENT OF CONSUMER SURPLUS AS ECONOMIC BENEFITS

CS linear

ATT 2 2 1

CS lin

log

max(REAL _ PRICE) (max(ATT )

1

( REAL _ PRICE ( ATT

))

CS semi

ATT
log 1

CS log

1
log 1

[(max( REAL _ PRICE ) (max( ATT ))

1

( REAL _ PRICE

ATT )]
1

CS log

log

( REAL _ PRICE ATT ) 1 1

1

REAL_PRICE

Table 7.5: Estimates of Consumer Surplus Benefits Generated by Wanganui Representative Rugby (in 1999 dollars) Model 7.1 Season (Linear) ($) Model 7.2 (Lin Log) ($) Model 7.3 (Semi Log) ($) Model 7.4 (Log Log) ($)

Table 7.6: Present Values of Consumer Surplus Benefits Generated by Wanganui Representative Rugby (Average Season Estimates, in 1999 dollars) Time (years) Discount Rate (%) 2 4 6 10 15 20 20 30

7.8. CONCLUSIONS

8
CONCLUSION
8.1. INTRODUCTION

8.2. MAJOR FINDINGS AND POLICY IMPLICATIONS OF THE RESEARCH

8.2.1. Major Findings of the Research

8.2.2. The Sequential Development of Sports Facilities: How the Research Informs the Framework

8.2.3. Policy Implications

8.3. CONTRIBUTIONS OF THE RESEARCH

8.4. LIMITATIONS OF THE RESEARCH

8.5. SUGGESTIONS FOR FUTURE RESEARCH

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Econ Journal Watch, 5

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Area, 37 Critical Sociology, 29 . Northern Advocate The Sunday Star Times, Athletic Park : a lost football ground

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