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For an Olive Wreath? Olympic Games and Anticipation Effects in Macroeconomics

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  • Pappa, Evi
  • Brückner, Markus

Abstract

The hosting and bidding for the Olympic Games is a natural experiment to test for anticipation effects in macroeconomics. We examine these effects using panel data for 184 countries during the period 1950-2006. We find that hosting the Games generates positive investment, consumption, and output responses already before the hosting of the Games. We also detect significant anticipation effects in countries that bid for the Games. While bidding for the Games has a transitory level effect, hosting the Games has a permanent level effect.

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  • Pappa, Evi & Brückner, Markus, 2011. "For an Olive Wreath? Olympic Games and Anticipation Effects in Macroeconomics," CEPR Discussion Papers 8516, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:8516
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    1. Does hosting Olympic Games matter after all?
      by Economic Logician in Economic Logic on 2011-05-04 19:04:00

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    Cited by:

    1. Julie Clark & Ade Kearns, 2016. "Going for gold: A prospective assessment of the economic impacts of the Commonwealth Games 2014 on the East End of Glasgow," Environment and Planning C, , vol. 34(8), pages 1474-1500, December.
    2. Markus Brückner & Evi Pappa, 2015. "News Shocks in the Data: Olympic Games and Their Macroeconomic Effects," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 47(7), pages 1339-1367, October.
    3. Jeroen Schokkaert & Johan F.M. Swinnen & Thijs Vandemoortele, 2012. "Mega Events and Sports Institutional Development: The Impact of the World Cup on Football Academies in Africa," Chapters, in: Wolfgang Maennig & Andrew Zimbalist (ed.), International Handbook on the Economics of Mega Sporting Events, chapter 19, Edward Elgar Publishing.
    4. Pappa, Evi & Brückner, Markus, 2011. "For an Olive Wreath? Olympic Games and Anticipation Effects in Macroeconomics," CEPR Discussion Papers 8516, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    Anticipation; Mega event; Natural experiment;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

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