EphBlog loves Economics Professor Steve Sheppard something fierce, but corporatist nonsense like this requires rebuttal.

More than $260 million statewide, including $103 million in Berkshire County.

That’s the overall economic impact of the Boston Symphony’s summer season at Tanglewood and its three-season schedule in Boston, including the Boston Pops.

The big numbers come from an independent study by Williams College professor of economics Stephen Sheppard that depicts the BSO as “a key economic force” in western and eastern Massachusetts.

This is not just nonsense, it is Nonsense on Stata.

1) Sheppard’s study is in no meaningful way “independent.” Doesn’t Eagle reporter Clarence Fanto have a clue? The BSO gives money to Sheppard/Williams and, in return, gets a report. The BSO is the customer and it gets what it pays for. Moreover, Sheppard has been producing reports like this for the BSO for more than a decade. Do you really think if his last report (pdf) had come up with the wrong answer that BSO would have hired him again? Ha!

2) This is not to say that Sheppard is a “hired gun” who will say whatever his paymasters demand. No! Sheppard is an excellent (and honest!) economist, one who really believes that the BSO magically generates phenomenal wealth. And that is why BSO hires him and not some other, more skeptical, economist.

3) I am happy to spend several days going through the details of why this analysis is nonsense, if readers are interested. Short version: This is a “promotional study,” just like the ones used to justify public subsidies for sports stadiums. See this report from Brookings about why stadiums are a boondoggle.

4) Never forget to look, not just at what is seen, but at what is unseen. The policy issue is: Should the state of Massachusetts (or the town of Lennox or a rich philanthropist) give $10 million more to BSO or, instead, give $10 million to some other non-profit, like the basketball Hall of Fame in Springfield? We need to compare the jobs (or whatever) generated by spending on the BSO with the jobs (or whatever) generated by devoting the same quantity of resources to something else. The Eagle, either out of economic ignorance or local cheer-leading, fails to even ask the appropriate question.

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