Comments on economics, mystery fiction, drama, and art.

Monday, October 23, 2006

Winning the World Series and Economic Ressurection?

A article in the sports section of Slate explores the question of what economic development effects we might expect if the Detroit Tigers were to win the World Series. Short answer: Don't hold your breath waiting for anything.

Longer answer: Why would we expect an effect? What is the mechanism by which winning a sports championship would (a) stimulate a burst of entrepreneurship or (b) serve as a very strong force attracting successful firms to locate there, or to build new establishments there? There's no reason to expect such an effect, and no evidence that such an effect exists. So a World Series championship might be a nice thing for Detroit and its citizens, enjoy it for what it is, not because it will lead to a rosy future.


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