How the NCAA tournament impacts host cities – new video uploaded to AP Video Hub

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Ben Van Kammen, a senior lecturer of economics in the Mitchell E. Daniels, Jr. School of Business at Purdue University, says cities hosting large sporting events essentially see a diversion or reallocation of economic activity closer to where the event is taking place. He says there is no evidence that such events result in significant additional economic activity to cities. Foot traffic and spending may increase around the stadium, he says, but this activity comes from activities that people aren’t doing in other parts of the city. Additionally, residents may avoid crowded downtown areas and choose to spend their time and money elsewhere while the event is ongoing.