Agglomeration, Tax Differentials, and the Mobility of Professional Athletes

Driessen, Grant A.; Sheffrin, Steven M.

doi:10.2139/ssrn.2594832

Cited by 1 publication

(1 citation statement)

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“…Mills et al (2016) and Mondello et al (2017) discussed how shared markets impact broadcast viewership in Major League Baseball (MLB) and the National Football League (NFL) and reported evidence supporting localization effects in professional baseball broadcasts and evidence of local media cannibalization in professional football broadcasts. Driessen and Sheffrin (2017) analyzed how industry concentration impacts location decisions for race car drivers and golfers, finding that tax preferences are an important determinant of clustering for golfers, but agglomeration reduces this effect on the location of race car drivers, who tend to cluster in a small area in North Carolina. Henrickson (2012) Two recent papers analyze the relationship between proximity of sports teams and team performance in developed countries.…”

Section: Introductionmentioning

confidence: 99%

Localization Economies and Firm Productivity: Evidence from Football Teams in Sao Paulo, Brazil

Humphreys

Neto

2020

SSRN Journal

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Agglomeration economies affect urban economic outcomes. We analyze variation in sports team productivity and localization of teams across divisions and cities in Campeonato Paulista an annual football competition in São Paulo state, Brazil, exploiting plausibly exogenous variation in localization generated by a promotion and relegation system in this league. Results show that both urbanization, proxied by population, and localization affects short and long run team productivity. These results provide new evidence on the importance of localization economies in the urban economy in developing countries and shed light on why sports teams in larger cities enjoy more success than those in smaller cities.

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