Center for Business and Economic Research - Ball State University


CBER Data Center
Projects and PublicationsEconomic IndicatorsWeekly CommentaryCommunity Asset InventoryManufacturing Scorecard

About

Commentaries are published weekly and distributed through the Indianapolis Business Journal and many other print and online publications. Disclaimer

RSS Feed

Disclaimer

The views expressed in these commentaries do not reflect those of Ball State University or the Center for Business and Economic Research.

Recent

Two Key Economic Lessons in One BillHoosiers face trade-offs and opportunity costs in the wake of SEA1.

Time to Fix Economic Development PolicyAllocating tax dollars to land development won’t cause economic growth.

The Unanticipated Effects of SB1Businesses, governments and households may all feel the effects.

The Stupidest of PoliciesThis whipsawing of tariff rates has unnerved financial markets, which on Wednesday, were toying with a liquidity crisis.

View archives

Top Tags

jobs and employment 261
economics 201
state and local government 188
education 186
indiana 171
economic development 171
budget and spending 145
taxes 144
law and public policy 142
workforce and human capital 139
Browse all tags
Reporter / Admin Login

July 14, 2008

Summer Fun Economics

Summer is at its mid-point, and with it comes the end of little league baseball, scout camp and a seemingly endless string of swim meets for the Hicks household. Like many of you out there I welcome a few more quiet evenings at home. But during those long third inning stretches and sleepless evenings in a tent, I spent some time calculating how much we value these youth sports and activities. You might be surprised what this math tells us about ourselves. 

When we hear about the value of scouting, or summer sports most of us intuitively think of several things. First, it is fun.  Fun matters, and has economic value (just ask Walt Disney). Second, it tends to promote healthier lifestyles. Third, these types of events promote community and social ties. I’m no sociologist, but is seems clear to me that the experience of having other parents coach, time events and set up tents provides an important lesson for kids. I also know it has economic value (and I’ll explain later). More importantly, youth sports and activities promote something that’s coming back in vogue and that is character. 

I know these things have economic value because we spend so much of our time, energy and treasury on them. Economists have long used our willingness to spend on something that was hard to measure to impute value. Here’s the math.

According to the Census, about one in four of our States’ residents are under 18, making them about 1.5 million strong. As a “back of the envelope” estimate suppose that each one participates in one activity a year (probably understating the actual amount by a long shot). Now suppose that for each kid, there is a $100 worth of equipment, a $60 direct fee for participation, another $150 sponsorship payment and local government costs of $50 per participant and $10 concessions. (I think these are very conservative annual figures.)  By this count we have roughly $555 million expended on kid’s activities per year. So, we Hoosiers value kid’s activities at over $500 million. This is about half the annual sales tax collections in the state without counting a single hour of the time coaches and parents spent with kids (which dwarfs all other expenditures in terms of value). In a world that worries so much about the economy, it is helpful to know how families value the activities that aren’t really part of commercial economic activity. 

The economics are instructive of what we care about in our communities. But it shouldn’t cause us to lose sight of the bigger things. As for me, watching my kids swim their hearts out on a relay and perform silly scout skits made my summer. And if my seven-year-old holds tight the life lessons of hard work and compassion embodied in just one baseball season that ended in a stinging, tearful loss, I’ll judge it to have more value than a Ph.D.

Link to this commentary: https://commentaries.cberdata.org/105/summer-fun-economics

Tags: economics


About the Author

Michael Hicks cberdirector@bsu.edu

Michael J. Hicks, PhD, is the director of the Center for Business and Economic Research and the George and Frances Ball distinguished professor of economics in the Miller College of Business at Ball State University. Note: The views expressed here are solely those of the author, and do not represent those of funders, associations, any entity of Ball State University, or its governing body.

© Center for Business and Economic Research, Ball State University

About Ball State CBER Data Center

Ball State CBER Data Center is one-stop shop for economic data including demographics, education, health, and social capital. Our easy-to-use, visual web tools offer data collection and analysis for grant writers, economic developers, policy makers, and the general public.

Ball State CBER Data Center (cberdata.org) is a product of the Center for Business and Economic Research at Ball State University. CBER's mission is to conduct relevant and timely public policy research on a wide range of economic issues affecting the state and nation. Learn more.

Terms of Service

Center for Business and Economic Research

Ball State University • Whitinger Business Building, room 149
2000 W. University Ave.
Muncie, IN 47306-0360
Phone:
765-285-5926
Email:
cber@bsu.edu
Website:
www.bsu.edu/cber
Facebook:
www.facebook.com/BallStateCBER
Twitter:
www.twitter.com/BallStateCBER
Close