Having a top professional sport team in a geographical area has many potential economic impacts. In this paper we analyze the effect of having a professional football team in the Spanish First or Second Division in a certain province on the amount of sales of football pools in Spain (La Quiniela). To carry out the empirical exercise we estimate a demand equation using a panel data set at the provincial level for the years 1985-2005, merging the traditional economic models in the lotto demand literature: the effective price model and the jackpot model. Our results show that having a club in...Read more
