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Begin New Search Topic Economics Content Type Working Paper Author Wolfgang Maennig

1. Heterogeneous consumer preferences for product quality and uncertainty

Author:
Wolfgang Maennig and Steffen Mueller
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
We provide evidence for heterogeneous consumer preferences for product quality and game outcome uncertainty (GOU) in Major League Baseball. Using attendance data from 2013 to 2019, we explore func-tional data clustering techniques to detect common patterns in predictive margins of team-specific win-ning probability. As a central result, we identify five groups of teams with similar GOU effects. However, only a few teams’ fans show GOU preferences that resemble the typical hump-shape that is postulated by the uncertainty of outcome hypothesis; the largest cluster is comprised of teams with fans whose at-tendance behavior is relatively insensitive to differences in GOU.
Topic:
Economics, Data, Consumer Behavior, and Uncertainty
Political Geography:
Global Focus

2. Consumer and employer discrimination in professional sports markets – New evidence from Major League Baseball

Author:
Wolfgang Maennig and Steffen Mueller
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
We investigate the relationship between consumer discrimination, racial matching strategies, and employer discrimination in Major League Baseball (MLB) from 1985 to 2016. To this end, we assess the extent to which both fan attendance and team performance respond to changes in teams’ and their local market areas’ racial compositions. We innovate by using a significantly enhanced data basis with individual player data that we derive from combining web scraping and using facial recognition techniques to identify player race and using County-level Census data instead of Metropolitan Statistical Area data. We find that fans in both MLB Leagues developed a taste for racial diversity in the late 1980s; since the 2000s, discrimination starts to increase again. However, this discrimination is not fully rationalizing the performance gap across athletes of different race and ethnicity; employer discrimination is not primarily driven by fans’ racial preferences.
Topic:
Economics, Race, Employment, Sports, Ethnicity, Discrimination, Consumer Behavior, Facial Recognition, and Baseball
Political Geography:
Global Focus

3. Yellow Cards and Suspension by Choice: Determinants and Asymmetries

Author:
Wolfgang Maennig and Franziska K. Kruse
Publication Date:
05-2019
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
This study demonstrates that psycho-economic determinants are significant in the awarding of yellow cards in a soccer match. This is the first multivariate analysis of the number of yellow cards given to a team in a match, and the study concludes that the characteristics of the referee, a home match effect, a derby match effect, and whether a team wins are crucial. The absolute point difference in relation to the current opponent can play a role as well. This is also the first work to analyze the probability of a team’s player collecting his fifth yellow card. We find that the probability is not determined by the characteristics of the referee but by whether a team wins, by whether a team plays at its home pitch and by the quality of the teams participating in the subsequent matches. Soccer players tend to collect their fifth yellow card and their suspension by choice when playing against a better opponent in the next match. For teams in the lower range, the opponent after next plays a role as well.
Topic:
Economics, Sports, and Psychology
Political Geography:
Global Focus

4. A 100-million-dollar fine for Russia's doping policy? A billion-dollar penalty would be more correct!

Author:
Wolfgang Maennig and Helmut Grothe
Publication Date:
11-2017
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
The so-called McLaren Report disclosed the Russian state-subsidized doping and systematic concealment of positive doping samples, up to and including the 2014 Winter Olympics in Sochi, Russia. As a result, the International Olympic Committee (IOC) and international sports federations excluded a large proportion of the Russian athletes from the 2016 Summer Olympics in Rio, Brazil. The IOC is still looking for a solution for the 2018 Winter Olympics in South Korea, which will begin in just a few weeks. In addition to the ban of individual Russian athletes, due to a follow-up examination of doping samples, the question remains as to how the Russian sports leadership could be appropriately prosecuted for fraud. One of the proposals is to impose a fine of €100 million on Russia (Simeoni 2017). Such a proposal involves at least two problems. On one hand, the legal basis for such a punishment was unclear for a long time. Until recently, international doping law provided for penalties against specific individual offenders, for example, in the form of competition bans, which are usually temporary, in cases where athletes have been found guilty of doping for the first time. To impose fines, especially on entire national associations, was rather difficult. After all, some of the international sports federations excluded parts of the Russian Olympic team from Rio in 2016 but allowed the remaining Russian athletes to the games only on the condition that the competing Russian Federation bore all the investigation costs.
Topic:
Economics, Sports, Olympics, and Drugs
Political Geography:
Russia

5. The future development of world records

Author:
Wolfgang Maennig and Franziska K. Kruse
Publication Date:
10-2017
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
We conduct an innovative analysis of sporting world records by a) using economic instead of sporting determinants and b) by using multivariate stochastic frontier functions. Using data from 48 different disciplines between 1970 and 2014, we show that world records are close to full efficiency and therefore actual athletic frontiers. Forecasts including economic determinants imply that the dynamics of world records largely depend on the dynamics of the frontiers and their driving forces, i.e., socio-economic developments.
Topic:
Economics, Sports, and Socioeconomics
Political Geography:
Global Focus

6. Governance in Sports Organizations

Author:
Wolfgang Maennig
Publication Date:
08-2017
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
With the revelation of the Fédération Internationale de Football Association (FIFA) corruption scandal in May 2015, the integrity and thus the general configuration of (international) sports organizations were publicly contested. The principle of moral behavior in international sports organizations (Arnold, 1994) was clearly violated and the high (self) esteem of sports suffered. The accusations of corruption regarding the Men’s FIFA World Cups1 (BBC, 2015) as well as the bribing scandals during the Olympic bidding processes2 stained the integrity of sports. Sport values, also condensed in the concept of “Olympic spirit” (or “Olympism” (Adi, 2014)), are based on the philosophy that best performances (should) lead to best results and rewards. Sport serves as a symbol for respect, self-discipline, health and deserved rewards as a result of outstanding athletic achievements. The corruption scandals, which include the complete value chain of sports, threaten this philosophy and show why sports organizations require special rules for their governance. This article deals with the general concept of (good) governance in sports organizations, explaining its required particularities through a look at its principles, existing challenges and issues that have yet to be resolved. It will also give an overview of which obstacles need to be taken into account for the implementation of good governance. Furthermore, it lays out some potential ideas for enhanced good governance through the example of mega-events such as the Olympic Games.
Topic:
Economics, Governance, Sports, and Olympics
Political Geography:
Global Focus

7. Zoning in reunified Berlin

Author:
Gabriel Ahlfeldt, Wolfgang Maennig, and Felix J. Richter
Publication Date:
06-2017
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
While urban renewal programs have become widely used policy measures to target urban development less is known about the reasons why certain areas are more responsive to policy interventions than others. With this study we address some of these issues by analyzing an urban renewal program in Berlin, Germany, with 22 designated renewal zones between 1990 and 2012. We separately estimate the effects of the renewal policy on property prices for each respective redevelopment area by comparing price developments in these areas to a series of runner-up areas and to geographically close transactions. We find a considerable amount of heterogeneity. While some areas profit form the renewal policies, there are several areas which develop quite differently and end up with a decrease in property prices due to the urban renewal policy.
Topic:
Economics, Urban, Economic Development, and Property
Political Geography:
Germany

8. Major Sports Events: Economic Impact

Author:
Wolfgang Maennig
Publication Date:
06-2017
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
Economic impact has developed into one of the most cited and used arguments to bid for major events. Ex ante studies on the economic impact, which analyze regional income and employment impacts, are usually required by local chamberlains or regional financing authorities and occasionally are a basis for votes in the relevant assemblies, parliaments or public referenda. Occasionally, economic impact studies are required by law as proof of the efficient allocation of public resources. However, in most cases, economic impacts are part of public relations, attempting to convince the media and relevant stakeholders that the (planned) major event is beneficial for the local, regional or national economy and may, at least to a considerable degree, finance itself by the induced tax increases.
Topic:
Economics, Sports, Media, Public Relations, Economic Development, and Stakeholders
Political Geography:
Global Focus

9. Public Referenda and Public Opinion on Olympic Games

Author:
Wolfgang Maennig
Publication Date:
06-2017
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
Public referenda on Olympic bids have drawn considerable interest in the recent past, also because – with few exceptions – the voters decided against the Olympic ambitions of the local governments and/or local bid committees. For example, within the last five years before the finalizing of this text, voters in Vienna and Hamburg decided against bids for Olympic Summer Games in 2028 and 2024, respectively. Ambitions for Olympic Winter Games have been ended by referenda in Graubünden 2026 (Switzerland), Munich 2022 (Germany), St. Moritz / Davos / Graubünden 2022, and Krakow 2022 (Poland). Table 1 presents the data of the history of Olympic referenda and clarifies that Olympic referenda are by no means an innovation of recent times: The oldest reported referenda are from the 1960´s. All public referenda were held on Olympic Winter Games, with the exception of the two Summer Games referenda for Vienna 2024 and Hamburg 2024 mentioned above. There was a balance between positive and negative referenda for Olympic Games bids up to the 1970s. Since the 1980s, the number of negative referenda has clearly outperformed the number of positive referenda.
Topic:
Economics, Sports, Olympics, Voting, and Referendum
Political Geography:
Global Focus

10. Which countries bid for the Olympic Games? Economic, political, and social factors and chances of winning

Author:
Wolfgang Maennig and Christopher Vierhaus
Publication Date:
04-2016
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
This contribution analyzes 132 factors on their potential to discriminate countries bidding for hosting the Olympic Games from non-bidding countries. Our binary, clustered model using generalized estimating equations (GEE) shows that countries recording long-term economic growth and pursuing a liberalization and globalization policy will consider an Olympic bid. In addition, countries with an urban population above 10 million, with stable election results and an improvement in health standards as well as more attractive tourism destinations are more likely to bid for the Olympic Games. Finally, the bid decision is shaped by experience in hosting major sports events, a country and regional rotation, persistence and climatic conditions.
Topic:
Economics, Globalization, Sports, Economic Growth, and Olympics
Political Geography:
Global Focus

11. News shocks in the data: Olympic Games and their macroeconomic effects – Reply

Author:
Viktoria Langer, Wolfgang Maennig, and Felix J. Richter
Publication Date:
10-2015
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
Recent analyses relate increases in the growth rate of countries to anticipation effects caused by bidding for the Olympic Games, so called news shocks. We argue that these findings should be interpreted cautiously. First, these analyses may suffer from an omitted variable bias because they neglect key determinants of economic growth. Second, these analyses compare the bidders for the Olympic Games to all other countries in the world, which constitutes a comparison between groups that show large differences in their structural characteristics. We show that including established determinants of economic growth and comparing the bidders to a suitable control group may lead to a complete disappearance of the anticipated economic effects of Olympic Games.
Topic:
Economics and Macroeconomics
Political Geography:
Global Focus

12. Rhythms and Cycles in Happiness

Author:
Wolfgang Maennig, Malte Steenbeck, and Markus Wilhelm
Publication Date:
06-2013
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
This study analyses time-dependent rhythms in happiness in three aspects. We show that the Sunday neurosis exists exclusively for men with a medium level of education and both men and women with high levels of education. Men with high levels of education may even experience a weekend neurosis. This study is the first to test for intra-monthly rhythms and to demonstrate that men with a lower educational background may suffer from negative effects on happiness towards the end of the month, potentially due to liquidity problems. The study is also the first to demonstrate that – even when controlling for health and income effects – happiness exhibits seasonal effects over the annual period, depending on gender and education.
Topic:
Economics, Happiness, and Neurosis
Political Geography:
Global Focus

13. Do places of worship affect housing prices? Evidence from Germany

Author:
Sebastian Brandt, Wolfgang Maennig, and Felix J. Richter
Publication Date:
10-2013
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
Using hedonic pricing models, this paper analyzes the impact of places of worship on the prices of adjacent condominiums in Hamburg, Germany. This is the first study on this subject to have been conducted outside the United States. It is also the first work to examine the externalities of places of worship of all five world religions. Furthermore, it is the first study that analyzes the effect of bell ringing on the adjacent residential property prices. Controlling for spatial dependence and by using potentiality variables positive externalities of places of worship within a radius of 1,000m were identified. Compared to properties beyond this threshold, price premiums of 4.8% were detected for condominiums at distances of 100m to 200m to the next place of worship. The results also show that the positive externalities near mosques do not differ from those of places of worship of other religions and that the positive effect of churches continues to be felt even after they have been deconsecrated. The influence of church bell ringing on the prices of surrounding residential properties, however, could not be substantiated.
Topic:
Economics, Religion, Property, and Price
Political Geography:
Europe and Germany

14. Urban Renewal after the Berlin Wall

Author:
Gabriel Ahlfeldt, Wolfgang Maennig, and Felix J. Richter
Publication Date:
11-2013
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
Urban renewal areas are popular but empirically understudied spatial planning instruments designed to prevent urban decline and induce renewal. We use a quasi-experimental research design to study the effects of 22 renewal areas implemented in Berlin, Germany, to increase housing and living quality in the aftermath of the city’s division during the Cold War period. Our results suggest that the policy has helped reduce (increase) the number of buildings in poor (good) condition by 25% (10%). Property prices increased at an annual rate of 0.4-1.7% according to our preferred estimates. Evidence is weak at best, however, for positive housing externalities. More generally, our findings indicate that the efficiency of program evaluations for place based -policies using quasi-experimental methods increases with the number of targeted areas and areas that provide the counterfactual.
Topic:
Economics, Urban, Property, Revitalization, and Redevelopment
Political Geography:
Europe and Germany

15. Exports and Olympic Games: Is there a Signal Effect?

Author:
Wolfgang Maennig and Felix J. Richter
Publication Date:
01-2012
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
Rose & Spiegel (2011) find that Olympic Games host countries experience significant positive, lasting effects on exports. They interpret their results as an indication that countries use the hosting of such events to signal openness and competitiveness. We challenge these empirical findings on the grounds that a comparison of structurally different and non-matching groups of countries might suffer from a selection bias. We demonstrate that with an appropriate matching and treatment methodology, the significant Olympic effect disappears.
Topic:
Economics, International Trade and Finance, Olympics, and Exports
Political Geography:
Global Focus

16. London 2012 - Medal Projection - Medaillenvorausberechnung

Author:
Wolfgang Maennig and Christian Wellbrock
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
We project the medal number and medal ranking for the Olympic Games in London in 2012. The largest relative increase is predicted for Brazil (80% more medals) and the UK (+28%).UK will continue to rank 4th. The largest decreases in medal numbers are predicted for Australia (-13%, but remains in 5th place) and the USA (-13%, remains No. 1). Germany should retain a rank of 6th and will win 38 medals (compared to 41 in 2008).
Topic:
Economics, Sports, and Olympics
Political Geography:
United Kingdom, Europe, and London

17. Becoming (Un)employed and Life Satisfaction: Asymmetric Effects and Potential Omitted Variable Bias in Empirical Happiness Studies

Author:
Wolfgang Maennig and Markus Wilhelm
Publication Date:
12-2011
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
Becoming unemployed has negative effects on life satisfaction; a transition from unemployment to employment, however, has stronger positive effects in absolute terms. The asymmetry of the non-pecuniary effect indicates a potential “omitted variable bias” in previous empirical happiness studies.
Topic:
Economics, Labor Issues, Employment, Unemployment, and Happiness
Political Geography:
Global Focus

18. Sectoral Labour Market Effects of the 2006 FIFA World Cup

Author:
Arne Feddersen and Wolfgang Maennig
Publication Date:
02-2010
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
Using the case of the 2006 FIFA World Cup, this study is the first to test the employment effects of a mega-sporting event on the basis of data that are both regional and sectoral. It is also the first study of sporting events to use a non-parametric test method. Earlier studies on the World Cup could not identify any employment effects. In contrast, we find a small but significant positive employment effect on the hospitality sector and a negative effect on the construction sector. To our knowledge, this is the first time that such a crowding-out effect of public investment on the occasion of a mega-sporting event has been found in an empirical analysis.
Topic:
Economics, World Cup, Labor Market, and FIFA
Political Geography:
Europe and Germany

19. The 2010 World Cup High-Frequency Data Economics: Effects on International Awareness and (Self-Defeating) Tourism

Author:
Stan Du Plessis and Wolfgang Maennig
Publication Date:
04-2010
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
Without a doubt, the 2010 World Cup of soccer in South Africa was a great experience for both soccer fans, who enjoyed a safe and efficiently-run tournament, and their South African hosts. The sporting and social spectacle was broadcast around the world and focused unprecedented media attention on South Africa. Despite the manifest success of the tournament, its short-term effects on international tourism, which are the nucleus of all other short-term positive effects on economic variables such as employment, income and taxes, have turned out to be of a much smaller magnitude than expected or even as reported during the tournament. This may be attributable to self-defeating prophecy effects. This study is a warning against the abuse of economic impact studies, especially those pertaining to major sporting events. It is also a call to use the “correct” arguments of measurable awareness effects and potential long-term development effects in discussing major sporting events. Methodologically, this study is innovative in its economic analysis of major sporting events because it (i) uses data from social networks and (ii) uses high-frequency daily data on tourism.
Topic:
Economics, Tourism, Sports, World Cup, Facebook, Social Networks, FIFA, and Google
Political Geography:
Africa, South Africa, and Global Focus

20. Do Men Slow Down Faster than Women?

Author:
Wolfgang Maennig and Michael Stobernack
Publication Date:
09-2010
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
This paper is the first test of differences between age-related reductions in the performance of men and women. The assumption that men age faster is obvious, because men's life expectancy is generally lower. In addition to other studies on age-related reduction in human performance, this paper examines the data taken from competitions on rowing machines, which have been standardized worldwide and which are hardly affected by weather or temperature. A third innovation is that this study looks for any potential ageing processes specific to gender and physique. Fourth, fractional polynomials have been added to the testing methodology. Contrary to intuition, we find evidence that women are affected by faster age-related reductions in performance.
Topic:
Economics, Labor Issues, Women, Aging, Men, and Gender
Political Geography:
Global Focus

21. Wage and Employment Effects of the Olympic Games in Atlanta 1996 Reconsidered

Author:
Arne Feddersen and Wolfgang Maennig
Publication Date:
05-2009
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
We estimate the economic effects of the 1996 Atlanta Olympic Games. Our difference in difference model checks for serial correlation and allows for a simultaneous test of level and trend effects, but otherwise follows HOTCHKISS, MOORE, & ZOBAY (2003) in this journal. We were not able to reconfirm their finding that the Games had significant positive employment effects. We do, however, reaffirm their result of no significant wage effects.
Topic:
Economics, Employment, Sports, Olympics, and Wages
Political Geography:
North America and United States of America

22. Impact of Non-smoking Ordinances on Hospitality Revenues: The Case of Germany

Author:
Gabriel Ahlfeldt and Wolfgang Maennig
Publication Date:
06-2009
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
Non-smoking ordinances are among the most popular albeit controversial public health-care legislations worldwide. This article provides an empirical assessment of the impact of non-smoking ordinances on bar and restaurant revenues in German Federal States. By application of panel spline regression and difference-in-difference strategies, we find negative impact limited to bars in the very short run. If any, there is a positive impact on total expenditures in the long run, indicating that either consumption pattern has not changed at all or that any reduction in spending by smokers is compensated for by a corresponding increase by non-smokers. These findings support the German – and similar – non-smoking legislations in the sense that positive externalities resulting from reduced health care cost are likely to outweigh the risk to businesses in the hospitality sector, at least in the long run.
Topic:
Economics, Public Health, and Revenue
Political Geography:
Europe and Germany

23. Investment in Stadia and Regional Economic Development – Evidence from FIFA World Cup 2006

Author:
Arne Feddersen, André L. Grötzinger, and Wolfgang Maennig
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
Using the case of the new stadiums for the FIFA World Cup 2006 in Germany, this paper is the first multivariate work that examines the potential income and employment effects of new stadiums outside of the USA. This study is also the first work on this topic that conducts tests on the basis of a (serial correlation consistent) Difference-in-Difference model with level and trends. As a robustness check, we use the “ignoring time series information” model in a form that is modified for nonsynchronous interventions. We were not able to identify income or employment effects of the construction of new stadiums for the FIFA World Cup 2006, which are significantly different from zero.
Topic:
Development, Economics, Infrastructure, Sports, Regional Economy, and Stadiums
Political Geography:
Europe and Germany

24. Monument Protection: Internal and External Price Effects

Author:
Gabriel Ahlfeldt and Wolfgang Maennig
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
This paper analyses the impact of heritage-listed buildings on condominium transaction prices in Berlin, Germany. We use transaction data to test for price differentials between listed and nonlisted properties and to study their impact on surrounding property prices. Proximity to built heritage is captured by distance to listed houses and indicators capturing neighborhoods with built heritage. Impact is assessed by applying a hedonic model to micro-level data and a non-parametric approach to location. While our findings suggest that listed properties do not sell at a premium or discount, heritage-listed buildings are found to have positive external effects on surrounding property prices.
Topic:
Economics, Culture, Heritage, and Real Estate
Political Geography:
Europe, Germany, and Berlin

25. The Feel-good Effect at Mega Sports Events. Recommendations for Public and Private Administration Informed by the Experience of the FIFA World Cup 2006

Author:
Wolfgang Maennig and Marcel Porsche
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
One of the most important social effects of the 2006 football World Cup was the feel-good effect. The present contribution is one of the first to deal with the development of a general theory for the management of feel-good effects and systematically analyses the influencing factors taking the 2006 World Cup as an example. Of importance are suitable basic organizational and infrastructure conditions in the realms of security, transport, and ecology. The media activities of public and private sponsors should break away from the traditional narrow focus and classic brand sponsoring in favor of a more socially responsible sponsoring. Sporting success of the home team is important, which may be due in equal measures to the style of play of the team and its demeanor. The creation of generally accessible participation opportunities through free TV in the host country and the setting up of fan festivals can counteract any frustration that might arise from the allocation of ad-mission tickets. Any targeted manipulation of the weather may be considered with due regard to possible ecological implications.
Topic:
Economics, Sports, Media, and World Cup
Political Geography:
Europe and Germany

26. The Role of Architecture on Urban Revitalisation: The Case of Olympic Arenas in Berlin-Prenzlauer Berg

Author:
Gabriel Ahlfeldt and Wolfgang Maennig
Publication Date:
05-2007
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
This paper investigates socioeconomic impacts of three multifunctional sports arenas situated in Berlin-Prenzlauer Berg, Germany. The three arenas were chosen for their potential to contribute to revitalisation of their economically deprived neighbourhoods. We employ a difference-in-differences approach to check for structural breaks in development of land values within areas of potential impact. Our results suggest that arenas emanate positive externalities and apparently have accelerated the process of gentrification going on in Prenzlauer Berg. However, evidence also supports concerns that congestion problems may adversely affect property values, at least when not addressed appropriately during planning.
Topic:
Economics, Architecture, Gentrification, and Stadiums
Political Geography:
Europe, Germany, and Berlin

27. How to Win the Olympic Games - The Empirics of Key Success Factors of Olympic Bids

Author:
Arne Feddersen and Wolfgang Maennig
Publication Date:
09-2007
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
This paper examines the probability of the success of city bid campaigns on the basis of quantified determinants for a total of 48 bids for the Summer Olympic Games between 1992 and 2012. Using a model comprising the distance of sporting venues from the Olympic Village, local temperatures and unemployment rates, we can correctly predict the decision for 100% of failed bids and 50% of successful bids.
Topic:
Economics, Sports, Olympics, and Bids
Political Geography:
Global Focus

28. The Impact of Sports Arenas on Land Values: Evidence from Berlin

Author:
Gabriel Ahlfeldt and Wolfgang Maennig
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
This paper develops a hedonic price model explaining standard land values in Berlin. The model assesses the impact of three multifunc-tional sports arenas situated in Berlin-Prenzlauer Berg which were de-signed to improve the attractiveness of their formerly deprived neighbourhoods. Empirical results confirm expectations about the impact of various attributes on land values. Sports arenas have significant positive impacts within a radius of about 3000 meters. The patterns of impact vary, in-dicating that the effective impact depends on how planning authorities address potential countervailing negative externalities.
Topic:
Economics, Sports, and Land
Political Geography:
Europe, Germany, and Berlin

29. World Cup 2010: South African Economic Perspectives and Perspectives Policy Challenges Informed by the Experience of Germany 2006

Author:
Stan Du Plessis and Wolfgang Maennig
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
The paper provides a first ex post analysis of the financial burden and economic benefits of the World Cup in Germany 2006. On the usual cost-benefit measures, the experience of WC 2006 appears to be in line with existing empirical work on large sporting events and sport stadia which rarely identify significant net economic benefits. The paper also argues that the “event benefit” or “feel-good factor” of sport events should no longer be neglected in cost-benefit studies of large sporting events, even though these effects are likely to be underestimated ex ante due to their possible experience good character. These lessons from Germany 2006 provide a context for analysing the potential risks and benefits for South Africa, the World Cup hosts in 2010. The paper aims to open a discussion on policy decisions, often at the level of urban planning and architecture, that might improve the balance of costs and benefits for sport events and stadia. To that end the paper attempts to initiate a discussion on the economic effects of “iconic buildings”.
Topic:
Economics, World Cup, Regional Economy, and Urban Planning
Political Geography:
Africa and South Africa

30. Mega-Sporting Events as Experience Goods

Author:
Malte Heyne, Wolfgang Maennig, and Bernd Suessmuth
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
This paper tests the hypothesis that a nation’s hosting of a mega-sporting event is an experience good for its residents. Applying data from an ex-ante and ex-post query based on contingent valuation methods, we use the Soccer World Cup 2006 as a natural experiment. The significant ex-post increase in valuation is shown to be due to adventitious citizens requiring an involving experience, rather than to an updating of a-prior assessment.
Topic:
Economics, Sports, World Cup, Cotingent Valuation Method, and Experience Goods
Political Geography:
Global Focus

31. Shrinking and Growing Metropolitan Areas - Asymmetric Real Estate Price Reactions?

Author:
Lisa Dust and Wolfgang Maennig
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
The population of Germany will be one of the first in the western hemisphere to undergo considerable permanent shrinkage. In view of the relatively low elasticities of supply and demand significant negative price reactions might be expected. This work supplements existing studies by estimating real estate prices for single-family homes on the disaggregate level of Germany’s metropolitan areas. It highlights asymmetric price reactions: growth in population numbers has no significant price effects, whereas declining population numbers lead to significant negative price effects.
Topic:
Demographics, Economics, Population, Real Estate, and Price
Political Geography:
Europe and Germany

32. Short-term to long-term employment effects of the Football World Cup 1974 in Germany

Author:
Florian Hagn and Wolfgang Maennig
Publication Date:
06-2007
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
This study demonstrates that the Football World Cup 1974 in Germany was not able to generate any short to long-term employment effects that were significantly different from zero. It is the first work to examine long-term employment effects of Football World Cup tournaments. It is also one of the first work to undertake a multivariate analysis of the employment effects of a major sporting event outside of the USA. In addition, this study does not arbitrarily determine the time period for the potential positive effects of a major sporting event but instead examines several alternative periods. Furthermore, the study tests for method sensitivity by analysing the data set in parallel with the approaches used in the studies of sporting events in the USA as well as in a fourth modifying estimation approach. In contrast to the conclusions reached in comparable studies, the results are not regarded as a clear refutation of the positive effects of major sporting events.
Topic:
Economics, Employment, Sports, World Cup, and Stadiums
Political Geography:
Europe and Germany

33. One year later: A re-appraisal of the economics of the 2006 soccer World Cup

Author:
Wolfgang Maennig
Publication Date:
06-2007
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
No two ways about it: the soccer World Cup competition in June 2006 in Germany was a great experience, not only for the soccer fans, and it still resonates far and wide. The various commentaries have all concluded that the economic effects were positive. Emphasis has often been placed on increased turnover in the retail trade, overnight accommodation, receipts from tourism and effects on employment. The present study shows that this reasoning is mostly of little value and may even be incorrect. Of more significance, however, are other (measurable) effects such as the novelty effect of the stadiums, the improved image for Germany and the feelgood effect for the population.
Topic:
Economics, Sports, World Cup, Regional Economy, and Stadiums
Political Geography:
Europe and Germany

34. Arenas vs. Multifunctional Stadia – Which Do Spectators Prefer?

Author:
Arne Feddersen and Wolfgang Maennig
Publication Date:
09-2007
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
Large sports stadia construction follows two different general concepts: (1) Mono-functional arenas which are specially suited for one sport exclusively and which are characterised by the absence of an athletic track. (2) Multifunctional sports stadia which can be used for different sporting or cultural events. Officials of clubs often argue that the atmosphere in an arena is significantly better than that of a multipurpose facility and that spectators prefer such an atmosphere. Estimated panel regressions with fixed effects show a significant positive effect of a mono-functional soccer stadium on spectator demand. Controlling for other demand determinants in the German professional soccer league, Bundesliga, an isolated effect of around 4,800 additional spectators a game can be found. This translates into a substantial increase of about 18.7% against the mean value of 25,602 spectators per Bundesliga game.
Topic:
Economics, Sports, Soccer, and Stadiums
Political Geography:
Global Focus

35. Stadium Architecture and regional economic development: International experience and the plans of Durban

Author:
Wolfgang Maennig
Publication Date:
01-2006
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
For the FIFA World Cup 2010, South Africa plans to invest heavily. The positive economic effects that the country is hoping for stand in contrast to almost all statistical ex-post studies. This contribution emphasises that these results, usually from research under-taken in the USA, can only be generalised to a limited degree. The density of sports venues in developed countries is so high, that the marginal effects of new stadia are necessarily limited. We also emphasise that stadium design around the world was not hitherto adequately targeted towards positive economic effects. The example of Durban and its plans for a new “iconic” stadium is used to illustrate fundamental principles of stadium design and their embedding in a re-urbanisation process that have to be undertaken in order to consciously achieve positive regional economic effects.
Topic:
Development, Economics, Sports, Architecture, World Cup, Regional Economy, and Soccer
Political Geography:
Africa, South Africa, and Global Focus

36. Trends in Competitive Balance: Is there Evidence for Growing Imbalance in Professional Sport Leagues?

Author:
Arne Feddersen and Wolfgang Maennig
Publication Date:
01-2005
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
The concept of competitive balance is a central aspect in the literature of sports economics. A popular argumentation of sport functionaries is that dominance of one or a few teams could lead to unequal incomes for the clubs, restrictions in the clubs’ ability to improve sporting performance and ultimately to a loss of attractiveness and loss of income for the league. Following this line of reasoning and alleging a negative trend in competitive sports functionaries often try to implement regulations in team sport leagues. The aim of this paper is to analyze for eight different leagues if there is such a trend existing. For an empirical test for trends in competitive balance of four European soccer leagues (ENG, ESP, GER, ITA) and four US Major Leagues (MLB, NBA, NFL, NHL), OLS regressions with a constant were carried out. For the entire observation period from 1969/70 to 2003/2004, of 48 trends ascertained, only 12 could be observed as being significantly positive (i.e. growing imbalance) with 19 significantly negative (i.e. growing balance). The remaining 17 trends were insignificantly different from zero.
Topic:
Economics, Sports, Soccer, Competitive Balance, and Sports Leagues
Political Geography:
Europe, Global Focus, and United States of America