Part A

In the first part of this homework you are going to make a list of the steps of an economic impact analysis and you are going to explain each step. To complete this part of the homework, you will need to watch all the videos in this topic. Once you have watched the videos and read the reading complete the steps outlined below.

Steps for Economic Impact Analyses

List the steps for conducting an economic impact analysis. After each step write an explanation of how to conduct the step.

For example

Step One: Determine the Geographic Area of Impact

The Geographic Area of Impact is the area we will use to determine who is a visitor and who is a local and is used to determine where spending must take place to count as impact. People outside the area count as visitors. Only money spent in the area counts as impact. The Geographic Area of Impact should be drawn around the entity that funded the event or is considering funding the event. For example, if county tax money is being used to fund the event, the area of impact should be the county.

Part B

In the second part of this homework, you are going to calculate the economic impact of a sport event. To complete this part of the homework you will need to read the following case and follow the steps.

Case Description

You have been commissioned by the Cincinnati city government to analyze the economic impact on the city of Cincinnati of the MLB All-Star Game. Specifically, the community wants to know the direct spending impact and the indirect spending impact. Cincinnati officials want to know whether it would be profitable to fund and bid for similar future events for the city. This event cost the City about $8 million to host.

Based on discussions with the local organizing committee and Cincinnati government officials, you determine that:

• The All-Star Game was held in the Great American Ball Park, which is in Hamilton County and seats 42,059
• The game was sold out
• Total spending by the organizing committee was $4.5 million, with 60% of that amount coming from organizations outside of the city. This is in addition to the amount the City itself spent. Sponsors from outside Cincinnati spent $1 million in town activating their sponsorships.

To complete this economic impact analysis:

1. Start by revisiting the steps you created for Part A. Do you have the information to complete any of these steps? What information do you need to complete the other steps? Draft a set of questions you could ask the instructor to gather the information you need. Include the relevant questions here.

2. Look on announcements to see if anyone has asked your questions. If so, gather the information. If not, ask your question. (nothing is required on this document)

3. Use the information to complete the steps of an economic impact analysis. Show your working for each of the steps.

4. What is your final dollar estimation of economic impact (remember your total impact should equal direct spending x multiplier)?

5. Subtract the costs, this will tell you how much the City profited from the event. How much did the City profit?

6. Do you recommend the city of Cincinnati spend public money on an event like this in the future? Why/why not?

7. What could the organizing committee do to make this event more beneficial to the City and its residents? Explain your answer.

8. If you were hired by the MLB to make the economic impact of the All-Star Game seem greater, what tactics would you use to modify your economic impact analysis?