If you reside in the areas of the metro in Philadelphia or Kansas City, congratulations: the indisputable fact that your city has reached Super Bowl translates into about USD 200 additional in your pocket.
He agrees – regardless of whether Philadelphia Eagles or Kansas City Chiefs will win an excellent game on February 9, each cities have won economic victory. Studies show that Playoffs themselves are enough to extend personal income in the region. And in case your team wins, you and your city will get even greater growth.
This Gratel doesn’t come from increased sales of goods, as you would possibly expect. Instead, happiness is a key driver. A successful season raises the mood of fans, which is not directly – to larger expenses and performance.
Why the win pays
I’m macroeconomist fascinated by sports economyAnd my colleague Christian end The University of Xavier is a psychologist specializing in fans’ behavior. Together, we published two studies connecting our areas of knowledge: “Winning proposal: Economic impact of successful NFL franchise“And”Team success, productivity and economic impact. “
In a study using data from the end of the twentieth century and at the starting of the twenty first century, we discovered that when the team moves from zero to 11 wins-the number needed for Playoffs-a home region sees a mean increase in income per person by around USD 200 per yr, corrected for inflation. We also discovered that the Super Bowl win was related to the premiere of USD 33, re -corrected with inflation.
When you multiply USD 200 by 6 million people living in a metropolitan area in Philadelphia and 2 million in the Kansas City region, that is because of all the money.
It’s about happiness, not T -shirts
If you’ve got ever been at the Super Bowl parade, you possibly can assume that increasing your income is related to people spending more on teams related to the team. But research shows that skilled sports teams normally have little impact on local income.
Even the Super Bowl host doesn’t seem a lot: our research shows that folks are higher economically if their local team wins Super Bowl than if their local area is the host.
So if people don’t spend more directly on the team, something else have to be happening. Our work pointed to 2 possible explanations – each related to happiness.
First of all, we hypothesized that happier people normally spend more. And when people spend more, this money is returned to the population by wages, so people’s income is growing. The secret is that folks spend more on the whole lot, not only things related to sports teams.
Because the football season normally ends in December, it might be that completely satisfied parents, who’re fans of the local NFL team, spend more on Christmas presents for his or her children. When the Super Bowl stretches later for the winter, family members can get nicer floral bouquets and more chocolate for Valentine’s Day, when the local team wins Super Bowl.
Steph Chambers/Getty Images
Another possible path is increased performance. Psychological research has discovered this happier individuals are more productive. As the season passes and the team wins, he has the reason that folks in the area shall be completely satisfied and work hard.
Previous studies confirm this concept. For example, a 2011 study Federal regulatory authorities are more productive. In places where private corporations dominate in the local economy – which suggests that almost all of the rest of the US – a rise in performance would lead the company to a more profitable, which could lead on to residents of higher earnings. Not even fans see the advantages when their neighbors are happier, spend more and work hard.
Regardless of how the Super Bowl seems, each the Metropolitan areas of Philadelphia and Kansas City have already won, because each fans and out of every region can make the most of higher income.