I in this discussion post would like to discuss the externalities, meaning the uncompensated impact of one person’s actions on the well-being of a third party, presented and disregarded in the news in connection to the construction of a stadium in Las Vegas. In addition, I would also like to discuss if the stated assumptions of the positive externalities are correct or not. I will be taking articles from other new sources that will not be clearly directed at the Las Vegas stadium, but stadiums in general as it is still something being discussed in the news and can be employed in this specific situation.
Recent local news has been discussing the possibility of the Raiders, an NFL team, moving to Las Vegas. The prospect of such an occurrence …show more content…
The largest positive externality they cite in news outlets as justification of such a large subsidy is that the stadium will result in an increase of economic growth. Which will be generated by an increase in spending on rooms, meals, and other travel and entertainment that takes place outside the stadium, and will not accrue to the team’s or building owners’ revenue. This reason of economic growth seems quite reasonable and logical. However, the economic growth that is being touted has little evidence that proves such a thing. Instead, there is much more suggestion from economists stating that building a stadium does not create any economic growth at all. In relation to the Las Vegas stadium Roger Noll, a Stanford economist, has stated that the economic growth that people like Governor Sandoval are touting has no basis in reality. He has also stated that NFL stadiums do not generate significant local economic growth. In relation to stadiums in general Dennis Coates, a professor of economics at the University of Maryland and Brad Humphreys, a professor of economics at West Virginia University have also stated in the news that they have not uncovered any examples in which the presence of a professional sports team can be linked to a boost in the local economy. The two economists as a result conclude that there is no economic growth from a stadium. They based this conclusion on new data and previously published research, in which they analyzed economic indicators from 37 major metropolitan areas with major-league teams. Now what supporters may like to argue is that Las Vegas has a different economy than most cities and so it cannot be compared to other cities with stadiums. However, Coates and Humphreys find that no matter what cities or areas were examined, no matter what estimators, model
Recent local news has been discussing the possibility of the Raiders, an NFL team, moving to Las Vegas. The prospect of such an occurrence …show more content…
The largest positive externality they cite in news outlets as justification of such a large subsidy is that the stadium will result in an increase of economic growth. Which will be generated by an increase in spending on rooms, meals, and other travel and entertainment that takes place outside the stadium, and will not accrue to the team’s or building owners’ revenue. This reason of economic growth seems quite reasonable and logical. However, the economic growth that is being touted has little evidence that proves such a thing. Instead, there is much more suggestion from economists stating that building a stadium does not create any economic growth at all. In relation to the Las Vegas stadium Roger Noll, a Stanford economist, has stated that the economic growth that people like Governor Sandoval are touting has no basis in reality. He has also stated that NFL stadiums do not generate significant local economic growth. In relation to stadiums in general Dennis Coates, a professor of economics at the University of Maryland and Brad Humphreys, a professor of economics at West Virginia University have also stated in the news that they have not uncovered any examples in which the presence of a professional sports team can be linked to a boost in the local economy. The two economists as a result conclude that there is no economic growth from a stadium. They based this conclusion on new data and previously published research, in which they analyzed economic indicators from 37 major metropolitan areas with major-league teams. Now what supporters may like to argue is that Las Vegas has a different economy than most cities and so it cannot be compared to other cities with stadiums. However, Coates and Humphreys find that no matter what cities or areas were examined, no matter what estimators, model