Given the recent economic crisis and the risen poverty rates, sports managers need to get insight in the effect of income and other socio-economic determinants on the household time and money that is spent on sports participation. By means of a Tobit regression, this study analyses the magnitude of the income effect for the thirteen most practiced sports by households in Flanders (the Dutch speaking part of Belgium), which are soccer, swimming, dance, cycling, running, fitness, tennis, horse riding, winter sports, martial arts, volleyball, walking and basketball. The results demonstrate that income has a positive effect on both time and money expenditure on sports participation, although differences are found between the 13 sports activities. For example, the effect of income on time and money expenditure is relatively high for sports activities like running and winter sports, while it is lower for other sports such as fitness, horse riding, walking and swimming. Commercial enterprises can use the results of this study to identify which sports to focus on, and how they will organise their segmentation process. For government, the results demonstrate which barriers prevent people from taking part in specific sports activities, based upon which they should evaluate their policy decisions.status: accepte

This paper presents a dynamic form of the Almost Ideal Demand System (AIDS). Three versions of the static AIDS model are employed to determine the preferred long-run equilibrium model and represents the short-run dynamics by an error correction mechanism. This estimation procedure is then applied to alcohol expenditure in Ireland. The estimated point elasticities are consistent with previous studies and a priori expectations. Beer and spirits are found to be price inelastic in both the short and long run. While wine is price inelastic in the short run and price elastic in the long run.

Research question: This study examines the determinants of four household sport expenditure items. The primary objective is to examine the effects of the recent economic recession in Ireland on these expenditures. This study is the first to analyse Irish household sport expenditure data and the first to study the effects of the economic recession on these items. Research methods: Data from the 2004/2005 and 2009/2010 Irish Household Budget Surveys, a period which covers the economic recession in Ireland, are employed. A Tobit model is estimated as each of the four sports expenditures has a large amount of zero expenditures. Results and findings: The social and economic characteristics of Irish households affect each sports item in differing ways. The presence of children of a particular age appears to be a strong determinant of spending on categories of sports which involve more physical activity (sport participation and leisure fees). Other categories of sports are influenced more by income (attendance at sporting events) and age and social status (club subscriptions). For some categories of sport spending there is a strong link with how the economy is performing, whereas for others household characteristics play just as important a role. Implications: This research has shown that sport is a multi-faceted product. Its determinants and how it is affected by economic downturns depends on the type of expenditure examined. For spending on certain categories the recession has had a clear negative effect, whereas for others it has been neutral. These are important considerations for sports managers and policy-makers when devising their strategies.