The determinants and income elasticities of direct and indirect sports expenditure categories

ABSTRACT

Research question: The current study investigates the income elasticities and socio-economic determinants of direct and indirect sports expenditure categories by means of a log normal hurdle regression.

Research methods: The data stem from a representative sample of 3005 Flemish families with school-aged children, gathered through a sports-specific survey. A log normal hurdle regression was used to calculate the determining factors and expenditure elasticities of expenditure on sports participation.

Results and findings: The results indicate that income, education and the age of the youngest child are positively related to almost all sports expenditure categories, while the number of family members and degree of urbanisation are significant for only a number of the expenditure categories. The elasticity value of the direct sports expenses is smaller than is the case for indirect sports expenditure. Between the expenditure categories large differences exist, as relatively large elasticities are found for sports holidays, transport and sports food and drinks, as opposed to low values of sports events, sports club membership, entrance fees for sports infrastructure, sports camps, clothing, footwear and equipment.

Implications: The fact that income significantly influences all expenditure categories demonstrates that further policy intervention is required to make sports consumption more accessible to lower income groups. Sports enterprises and policy-makers need to be aware that negative income shifts have a more profound impact on the indirect expenditure categories, and that certain sports activities (e.g. participation events) are relatively more favoured by low-income groups than is the case for sports club membership.

KEYWORDS:

• Income elasticities
• sports consumption
• direct and indirect sports expenditure
• log normal hurdle
• expenditure categories

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. Where the estimated variance can be written as

.