Appendices Appendix A: Questionnaire for domestic visitors

Appendices

Appendix A: Questionnaire for domestic visitors

1. Please indicate the 4 figures of your zip code? __________

Questions 2 and 3 were skipped for residents of the municipality of Groningen 2. Is the presence of the EC<21 tournament today the main reason for your visit to Groningen?

yes no

3. Beside your visit to the match do you also visit the city centre today?

yes no

4. Which methods of transport did you use to visit Groningen today? (Multiple answers possible)

train taxi bike

bus car airplane

5. How many matches of the 4 matches that are played in Groningen do you visit?

1 2 3 4

6. For how many persons (including yourself) do you pay the costs in relation to your visit to Groningen? …..

7. Please indicate where you spend your money on today in relation with your visit of Groningen (With the exception of accommodation)

Tickets ………..€

Food and Drinks ………..€

Souvenirs ………..€

Shopping in the city centre ………..€

Other entertainment (admission fee museum, boattrips,visit martinitower?) ………..€

Travel expenses (fuel, tickets bus/train, taxi) ………..€

Else namely ……… ………..€

Total: .……..€ 8. Do you stay at home?

no

else..

Questions 9 only posed if the respondent indicated to stay elsewhere

9. Please indicate where you stay overnight, in what type of accommodation, how long you stay there and what you pay for this accommodation. (Multiple answers possible)

Location Number of nights Type of

Accommodation

Costs per night

city Groningen Friends/Family – Hotel –

Camping- Pension

province Groningen Friends/Family – Hotel –

Camping- Pension

rest Netherlands Friends/Family – Hotel –

Appendix B: Questionnaire for foreign visitors

1. In which country do you live? __________

2. Is the presence of the EC<21 tournament today the main reason for your visit to Groningen?

yes no

3. Beside your visit to the match do you also visit the city centre today?

yes no

4. Which methods of transport did you use to visit Groningen today? (Multiple answers possible)

train taxi bike

bus car airplane

5. How many matches of the 4 matches that are played in Groningen do you visit?

1 2 3 4

6. For how many persons (including yourself) do you pay the costs in relation to your visit to Groningen? …..

7. Please indicate where you spend your money on today in relation with your visit of Groningen (With the exception of accommodation)

Tickets ………..€

Food and Drinks ………..€

Souvenirs ………..€

Shopping in the city centre ………..€

Other entertainment (admission fee museum, boat trip, visit martini tower?) ………..€

Travel expenses (fuel, tickets bus/train, taxi) ………..€

Else namely ……… ………..€

Total: .……..€ 8. Do you stay overnight in the Netherlands?

no

yes

Questions 9 only posed if the respondent indicated to stay overnight in the Netherlands

9. Please indicate where you stay overnight, in what type of accommodation, how long you stay there and what you pay for this accommodation. (Multiple answers possible)

Location Number of nights Type of

Accommodation

Costs per night

city Groningen Friends/Family – Hotel –

Camping- Pension

province Groningen Friends/Family – Hotel –

Camping- Pension

rest Netherlands Friends/Family – Hotel –

Appendix C: Construction of tri-regional input-output table

In this appendix the technical details of the construction of the regional table are discussed. This tri-regional input-output table is constructed out of an existing bi-tri-regional table published by the RUG and the CBS (1999). Sectoral technology, expenditure structure, and value totals of this table all relate to 1992, whereas the interregional trade percentages relate to 1997. Although the amounts in the table indisputably are outdated, the table can still be used to derive input-output coefficients. Of course a more recent table would have been preferable but unfortunately such a table is not available. Our input-output table contains 38 industries; these are specified in table 15.

Table 15: Industrial classification

1 Agriculture, Forestry 20 Electricity, water and gas supply

2 Fishing 21 Construction

3 Mining and quarrying 22 Wholesale and retail trade 4 Food industry (animal products) 23 Hotels, cafes and restaurants 5 Food industry (all other products) 24 Repair Services

6 Beverages and tobacco 25 Aviation and navigation 7 Textiles 26 Other transport and storage

8 Wearing apparel 27 Communication

9 Leather and shoes 28 Banks

10 Wood and furniture 29 Insurance 11 Paper and paper products 30 Real estate 12 Printing and publishing 31 Business services 13 Petroleum refineries 32 Central government 14 Chemical and rubber industry 33 Regional government 15 Building materials 34 Education

16 Basic metals, metal products and machinery 35 Medical and other health services 17 Electrical equipment 36 Cultural and recreational services 18 Transport equipment 37 Other personal services

Figure 4: From a bi-regional to a tri-regional table P R P R Σ P

z

ijPP PR ij

z

y

_iqPP

y

_iqPR P i

u

x

_iP R

z

ijRP RR ij

z

y

_iqRP

y

_iqRR R i

u

x

iR P j

m

m

R_j

m

_qP

m

_qR

m

_u•

m

P j

v

v

R_j

v

_qP

v

_qR

v

_u•

v

Σ

x

Pj R j

x

f

_qP

f

_qR

u

The characters P, R, C, and O refer to the province of Groningen, the rest of the Netherlands, the city of Groningen, and Ommeland respectively.

CC ij

z

= intermediate deliveries from industry i to industry j; i,j = 1,…,I CC

iq

y

= final deliveries from industry i to sector q; q = 1,….,Q , C

j

m

= imports from foreign countries, C

j

v

= values added, C

i

u

= exports to foreign countries, R

i

x

= output totals for industries, C

q

A part of the data in the bi-regional table can be put directly in the tri-regional table. The intermediary deliveries from industries located in region r to industries located in r remain unchanged (the quadrant RR

ij

z

in figure 4). The same holds for the deliveries from firms located in region r to final demand sectors in region r ( RR

iq

y

in figure 4) and the other final demand sectors R i

u

. Also the quadrants R i

u

, R j

m

, R q

m

, R j

v

v

qR and the column totals R j

x

and R q

f

are known. By definition (simply because together Ommeland and the City of Groningen make up the province of Groningen) the following equations hold:

j

i

z

z

z

z

z

_ijPP

=

_ijCC

+

_ijCO

+

_ijOC

+

_ijOO

,

∀

,

(11)

j

i

z

z

z

ijRO RC ij RP ij

=

+

,

∀

,

(12)

j

i

z

z

z

ijOR CR ij PR ij

=

+

,

∀

,

(13)

j

x

x

x

P_j

=

C_j

+

O_j

,

∀

(14)

j

m

m

m

P_j

=

C_j

+

O_j

,

∀

(15)

j

v

v

v

P_j

=

C_j

+

O_j

,

∀

(16)

q

f

f

f

_qP

=

_qC

+

_qO

,

∀

(17)

q

v

v

v

_qP

=

C_q

+

_qO

,

∀

(18)

q

m

m

m

_qP

=

_qC

+

_qO

,

∀

(19)

q

i

y

y

y

y

y

_iqPP

=

_iqCC

+

_iqCO

+

_iqOC

+

_iqOO

,

∀

,

(20)

q

i

y

y

y

_iqRP

=

_iqRC

+

_iqRO

,

∀

,

(21)

q

i

y

y

y

_iqPR

=

_iqCR

+

_iqOR

,

∀

,

(22)

i

u

u

u

_iP

=

_iC

+

_iO

,

∀

(23)

For the division of the level of production of industry i in the city of Groningen C i

Where C i

l

is the level of employment (measured in jobs of >15 hours per week, including temporary workers) in industry i in region c. Use was made of the CBS accordance table to account for different sector structures (CBS, 2004). The more recent industry classification SBI’93 (for which the PWR data was available) was converted to the SBI’74 classification (this is the classification that is used by the existing bi-regional input-output table).

To estimate the size of the intermediate deliveries, delivered within the province borders, we assume that these depend on the level of production of the demanding industry, the level of production of the supplying industry, and on the level of internal intermediary deliveries within the province.

j

i

x

x

x

x

z

z

_P j C j P i C i PP ij CC ij

=

*

*

,

∀

,

(26)

j

i

x

x

x

x

z

z

_P j O j P i C i PP ij CO ij

=

*

*

,

∀

,

(27)

j

i

x

x

x

x

z

z

_P j C j P i O i PP ij OC ij

=

*

*

,

∀

,

(28)

j

i

x

x

x

x

z

z

_P j O j P i O i PP ij OO ij

=

*

*

,

∀

,

(29)

The estimations do not take the phenomenon of “distance decay” into account. Distance decay refers to the effect of distance on spatial interactions. In economics this implies that firms are inclined to choose nearby suppliers. The most well-known explanation for this phenomenon is the presence of trade costs. Because our division does not take this phenomenon into account the internal trade (trade within Ommeland and within the city of Groningen) is thus systematically underestimated. This problem is more severe for within city trade compared to within Ommeland trade, because the spatial gravity point of Ommeland is not far away from the city of Groningen.

To estimate the level of imports and the level of the primary inputs of the city and Ommeland we assume that the input coefficients of industries in the city and in Ommeland are equal (i.e. they have the same cost structure).

j

v

v

v

v

_P j O j P j O j

=

*

,

∀

(33)

We assume that the level of output determines the level of deliveries from industries located in the City and Ommeland to final demand sector in the rest of the Netherlands. In algebra notation:

q

i

x

x

y

y

_P i C i PR iq CR iq

=

*

,

∀

,

(34)

q

i

x

x

y

y

_P i O i PR iq OR iq

=

*

,

∀

,

(35)

We assume that the export coefficients of firms located in the city of Groningen and firms located in Ommeland are the same. In algebra notation:

i

x

x

u

u

_P i C i P i C i

=

*

,

∀

(36)

i

x

x

u

u

_P i O i P i O i

=

*

,

∀

(37)

We reason that final consumption expenditure of a region depends on total disposable income in a region. This statistic is not directly available; however data on average disposable income per inhabitant and the number of inhabitants are available for all municipalities (CBS, 2000). The most recent year for which these statistics are available is 2000. By multiplying these we calculate total disposable income for both the municipality of Groningen and Ommeland. These are reported in table 16 below.

Table 16: Number of residents and disposable income for 2000

Region Number of residents Residents in % Average disposable income per head in €

Total disposable income in million € % City of Groningen 174,300 30.8 10,100 1,760 31.1 Ommeland 392,100 69.2 9,891 3,899 68.9 total 566,400 100 9,900 5,659 100

q

n

n

f

f

_P i C i P q C q

=

*

,

∀

(38)

q

n

n

f

f

_P i O i P q O q

=

*

,

∀

(39) Where C i

n

, O i

q

i

f

f

x

x

y

y

_P q C q P i C i PP iq CC iq

=

*

*

,

∀

,

(40)

q

i

x

x

x

x

y

y

_P j C j P i C i PP iq CO iq

=

*

*

,

∀

,

(41)

q

i

x

x

x

x

y

y

_P j C j P i C i PP iq OC iq

=

*

*

,

∀

,

(42)

q

i

x

x

x

x

y

y

_P j C j P i C i PP iq OO iq

=

*

*

,

∀

,

(43)

Similar to the intermediary deliveries, the division does not take into account the effect of distance. This division implies that internal final demand (final demand for products from the own region) is underestimated. Again, this is more relevant for internal deliveries within the city. Moreover the problem is probably more severe compared to intermediate deliveries because distance decay is larger in case of final demand.

q

i

x

x

x

x

y

y

_P j C j P i C i PP iq RC iq

=

*

*

,

∀

,

(44)

q

i

x

x

x

x

y

y

_P j C j P i C i PP iq RO iq

=

*

*

,

∀

,

(45)

Appendix D: Derivation of endogenous consumption demand

This appendix describes the derivation of endogenous consumption demand. We will show how endogenous consumption demand of residents of the city of Groningen is derived. Endogenous consumption of residents of Ommeland and endogenous consumption of residents of the rest of the Netherlands are derived in similar fashion14. Equation (52) shows regional private consumption demand of households living in the city of Groningen cc as the sum of private consumption demand of workers employed in sector j in the 3 regions for products/services from sector i the 3 regions. The first superscript indicates the region of demand, while the second superscript indicates the region of employment.

rr ij ro ij rc ij or ij oo ij oc ij cr ij co ij cc ij c

c

c

c

c

c

c

c

c

c

c

=

+

+

+

+

+

+

+

+

(50)

In algebra notation the nine categories of consumption can be written as:

j

i

x

w

t

s

p

x

q

c

_ijcc

=

_ijcc c_j

=

_icc

(

1

−

)(

1

−

)

cc_j c_j

,

∀

,

(51a)

j

i

x

w

t

s

p

x

q

c

o j co j cc i o j co ij co ij

=

=

(

1

−

)(

1

−

)

,

∀

,

commuters from C to O (53b)

j

i

x

w

t

s

p

x

q

c

rj cr j cc i r j cr ij cr ij

=

=

(

1

−

)(

1

−

)

,

∀

,

commuters from C to R (53c)

j

i

x

w

t

s

p

x

q

c

cj cc j oc i c j oc ij oc ij

=

=

(

1

−

)(

1

−

)

,

∀

,

(53d)

j

i

x

w

t

s

p

x

q

c

oj co j oc i o j oo ij oo

ij

=

=

(

1

−

)(

1

−

)

,

∀

,

commuters from C to O (53e)

j

i

x

w

t

s

p

x

q

c

rj cr j oc i r j or ij or ij

=

=

(

1

−

)(

1

−

)

,

∀

,

commuters from C to R (53f)

j

i

x

w

t

s

p

x

q

c

cj cc j rc i c j rc ij rc ij

=

=

(

1

−

)(

1

−

)

,

∀

,

(53g)

j

i

x

w

t

s

p

x

q

c

oj co j rc i o j ro ij ro ij

=

=

(

1

−

)(

1

−

)

,

∀

,

commuters from C to O (53h)

j

i

x

w

t

s

p

x

q

c

_ijrr

=

_ijrr r_j

=

_irc

(

1

−

)(

1

−

)

cr_j r_j

,

∀

,

commuters from C to R (53i) Where oc

ij

q

indicates the amount of goods produced by sector i in region o that is consumed by households from c that are working in sector j in region c per unit of production of j in c, and oo

ij

q

indicates the amount of goods produced by sector i in region o that is consumed by commuters working in region o per unit of production of j in c. In matrix notation the endogenous part of final demand by households living in the city of Groningen takes the following form:

⎥

⎥

⎥

⎦

⎤

⎢

⎢

⎢

⎣

⎡

⎥

⎥

⎥

⎦

⎤

⎢

⎢

⎢

⎣

⎡

=

⎥

⎥

⎥

⎦

⎤

⎢

⎢

⎢

⎣

⎡

+

+

+

+

+

+

r o c rr ro rc or oo oc cr co cc rr ro rc or oo oc cr co cc

x

x

x

Q

Q

Q

Q

Q

Q

Q

Q

Q

c

c

c

c

c

c

c

c

c

, in short

c

_C

=

Q

_c

x

All 9 Q sub-matrices contain 1444 q-coefficients. The q-coefficients are derived by multiplication of vectors containing the following coefficients:

oc i

p

= consumption package coefficient, indicating how much of total consumption in region C is spend on products of sector i from region o,

s

= household saving ratio (the part of the net income that is not consumed),

t

= average tax rate, assumed to be equal for workers in all sectors,

co j

w

= Labor income coefficients indicate gross labor income earned in sector j in region o by commuters from c per unit of output in j in o.

The consumption package coefficients are derived from the constructed tri-regional input-output table. The Household saving ratio is set at 0 %, because the individual household savings ratio was negative for 2006 and will probably also be negative in 2007 (CBP, 2007). This implies that all extra income is consumed.

The average tax rate is obtained from the CBS and equals 41.2% in 2005 (CBS, 2006a). We assume this rate is equal over all sectors of employment.

The labor income coefficients are derived from the tri-regional input-output table, and adjusted for commuting and the income of self-employed workers, by means of the following formula:

j

p

p

l

l

g

w

w

r s rj sj co o rj co j

=

(

*

)(

1

+

*

),

∀

(54) Where o rj

w

is the wages earned by “regular workers” per unit of output in j in o, co

g

is the share of workers employed in region o origination from region c15_,

sj

l

is the labor volume of self-employed workers expressed in FTE jobs in sector j,

l

_rjis the labor volume of “regular” workers expressed in FTE jobs in

sector j,

p

_sis the “fictive” wage level of self employed workers,

p

_ris the wage level of regular workers.

Data on gross labor income and output (used to calculate o rj

w

) were taken from the tri-regional input-output table. Data on labor volumes of “regular” and self-employed workers were taken from CBS (2006b)16. Data on commuting behavior were taken from own calculation based on CBS (2001) data (see table 17). Data on the wages of regular and self-employed workers (both relating to 2004) were taken from EIM (2007)17.

15 _{No commuting data was available for the different sectors. We have assumed commuting behavior is equal} over all sectors.

Table 17: The origin of workers employed in the City of Groningen, Ommeland and the Rest of the Netherlands.

Region of employment

City of Groningen Ommeland Rest of the Netherlands

City of Groningen _{51.41% 6.34% 0.24%}

Ommeland _{28.83% 58.40% 0.89%}

Region of residence