The University of San Francisco USF Scholarship: a digital repository @ Gleeson Library | Geschke Center Sport Management College of Arts and Sciences 1-2015 A Compensating Differential Approach to Valuing the Social Benefit of inorM League Baseball Nola Agha University of San Francisco,
[email protected] Dennis Coates University of Maryland - Baltimore County Follow this and additional works at: http://repository.usfca.edu/sm Part of the Sports Management Commons Recommended Citation Agha, N. & Coates, D. (2015). A compensating differential approach to valuing the social benefit of inorM League Baseball. Contemporary Economic Policy, 33(2), 285-299. DOI: 10.1111/coep.12080 This Article is brought to you for free and open access by the College of Arts and Sciences at USF Scholarship: a digital repository @ Gleeson Library | Geschke Center. It has been accepted for inclusion in Sport Management by an authorized administrator of USF Scholarship: a digital repository @ Gleeson Library | Geschke Center. For more information, please contact
[email protected]. A COMPENSATING DIFFERENTIAL APPROACH TO VALUING THE SOCIAL BENEFIT OF MINOR LEAGUE BASEBALL Abstract This research utilizes a compensating differential framework to measure the social benefits of minor league baseball teams. Consistent with findings at the major league level, individual housing observations from 138 metropolitan areas between 1993 and 2005 show that affiliated teams are associated with a significant 6 to 8% increase in rents in mid-sized markets ranging from 0.4 to 1.4 million people. On the other hand, independent teams and stadiums are associated with insignificant effects on rents. The positive effect of affiliated minor league teams suggests they are a valuable urban amenity that can contribute to local quality of life.