Imagine a hypothetic scenario of West Ham football team playing games
in Colchester. A consultant writes a report on the economic effects. The consultant
estimates that this would increase total spending in the Colchester economy by 61.6
million pound per year, computed as Δspending=s x N x m= £40 x 700,000 x 2.2,
where s is spending per football fan, N is the number of fans attending the games and
m is the average spending multiplier for the Colchester economy. Discuss the report,
assuming that the trainings would take place in London, and the players and coach
would live there. Is the increase overstated? [Think of an outsider as a person who
lives outside Colchester and an insider as a person who lives in Colchester.]
