Wednesday, 15 February 2012

Substitution effects - there's more!

It seems the Rugby World Cup has had all sorts of impacts - some good, some not so good. Sky City enjoyed a one-off surge in income due to the RWC, although Rainbow's End took a hit. I also noticed this story (Rugby fans shun cultural events) almost by accident but it is very relevant here - this counters the earlier post to some extent on Wellington's economic boost. Of course rugby fans would shun them - they're there for the rugby, after all. The question should be - by how much did the increase in rugby fans offset the loss in cutural visitors? This is the same point that Eric Crampton in Offsetting Behaviour made with the Christchurch experience of the RWC.

(BTW - thanks to Eric for a fascinating insight into his analysis of dodgy cost analyses in his talk to the School of Economics and Finance here at Massey today.)

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