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Economic Multipliers and Mega-Event Analysis

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  • Victor Matheson

    (Department of Economics, College of the Holy Cross)

Abstract

Critics of economic impact studies that purport to show that mega-events such as the Olympics bring large benefits to the communities “lucky” enough to host them frequently cite the use of inappropriate multipliers as a primary reason why these impact studies overstate the true economic gains to the hosts of these events. This brief paper shows in a numerical example how mega-events may lead to inflated multipliers and exaggerated claims of economic benefits.

Suggested Citation

  • Victor Matheson, 2004. "Economic Multipliers and Mega-Event Analysis," Working Papers 0402, College of the Holy Cross, Department of Economics.
    • Handle: RePEc:hcx:wpaper:0402
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    File URL: https://hcapps.holycross.edu/hcs/RePEc/hcx/HC0402-Matheson_Multipliers.pdf
    File Function: Preliminary version, 2004
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    References listed on IDEAS

    as
    1. John J. Siegfried & Andrew Zimbalist, 2000. "The Economics of Sports Facilities and Their Communities," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 95-114, Summer.
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    Citations

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    Cited by:

    1. Robert W. Baumann & Victor A. Matheson & Chihiro Muroi, 2009. "Bowling in Hawaii," Journal of Sports Economics, , vol. 10(1), pages 107-123, February.
    2. Victor Matheson, 2004. "Is Smaller Better? A Comment on "Comparative Economic Impact Analyses" by Michael Mondello and Patrick Rishe," Working Papers 0407, College of the Holy Cross, Department of Economics.
    3. Robert A Baade & Robert Baumann & Victor A Matheson, 2009. "Rejecting “Conventional” Wisdom: Estimating the Economic Impact of National Political Conventions," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 35(4), pages 520-530.
    4. Victor Matheson, 2006. "Mega-Events: The effect of the world’s biggest sporting events on local, regional, and national economies," Working Papers 0610, College of the Holy Cross, Department of Economics.
    5. Robert A. Baade & Robert Baumann & Victor A. Matheson, 2008. "Selling the Game: Estimating the Economic Impact of Professional Sports through Taxable Sales," Southern Economic Journal, Southern Economic Association, vol. 74(3), pages 794-810, January.
    6. Victor A. Matheson, 2006. "Is Smaller Better? A Comment on “Comparative Economic Impact Analyses†by Michael Mondello and Patrick Rishe," Economic Development Quarterly, , vol. 20(2), pages 192-195, May.
    7. Robert Baade & Robert Baumann & Victor Matheson, 2007. "Down, Set, Hike: The Economic Impact of College Football Games on Local Economies," Working Papers 0702, College of the Holy Cross, Department of Economics.
    8. Robert Baumann & Victor Matheson & Chihiro Muroi, 2008. "Bowling in Hawaii: Examining the Effectiveness of Sports-Based Tourism Strategies," Working Papers 0808, College of the Holy Cross, Department of Economics.
    9. Robert Baade & Robert Baumann & Victor Matheson, 2005. "Selling the Big Game: Estimating the Economic Impact of Mega-Events through Taxable Sales," Working Papers 0510, College of the Holy Cross, Department of Economics.
    10. Robert A. Baade & Robert W. Baumann & Victor A. Matheson, 2008. "Assessing the Economic Impact of College Football Games on Local Economies," Journal of Sports Economics, , vol. 9(6), pages 628-643, December.
    11. Robert A. Baade & Robert Baumann & Victor A. Matheson, 2008. "Selling the Game: Estimating the Economic Impact of Professional Sports through Taxable Sales," Southern Economic Journal, John Wiley & Sons, vol. 74(3), pages 794-810, January.
    12. Robert A. Baade & Robert Baumann & Victor Matheson, 2007. "Estimating the Economic Impact of Natural and Social Disasters, with an Application to Hurricane Katrina," Urban Studies, Urban Studies Journal Limited, vol. 44(11), pages 2061-2076, October.
    13. Douglas Barrios & Stuart Russell & Matt Andrews, 2016. "Bringing Home the Gold? A Review of the Economic Impact of Hosting Mega-Events," CID Working Papers 320, Center for International Development at Harvard University.
    14. Biao He & Lianxin Zhu & Xiaomei Cai & Jun (Justin) Li & Hong Zhu, 2020. "Examining the Impacts of Mega-Events on Urban Development Using Coupling Analysis: A Case Study of the Boao Forum for Asia," Sustainability, MDPI, vol. 12(2), pages 1-14, January.
    15. Michał Marcin Kobierecki & Michał Pierzgalski, 2022. "Sports Mega-Events and Economic Growth: A Synthetic Control Approach," Journal of Sports Economics, , vol. 23(5), pages 567-597, June.

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    More about this item

    Keywords

    economic impact; sports; sport economics; mega-events;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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