The Economic Effects of the Soccer World Cup 2006 in Germany with Regard to Different Financing

Abstract

This paper presents some results using the sport-economic simulation model SPORT. This model is based on a sport-specific input-output table for the year 1993, which has been integrated into the German INFORGE model. The performance of this model founded on the INFORUM philosophy. The results illustrate the importance of modelling sport-economic activities in deep detail, especially the integration of the system of national accounts. In addition, the results also show that it is possible to calculate the macroeconomic effects of the soccer World Cup, which may perhaps be hosted by Germany in 2006, with regard to the different financing of necessary extensions of public sports infrasfructure. Under favourable conditions-independent of the type of financing of these necessary investments-the staging of the soccer World Cup positively influences income and employment. Such calculations allow the decision-maker to estimate the opportunity costs of their decisions and can be the basis for an extended cost-benefit analysis.