News Shocks in the data : Olympic games and their macroeconomic effects
Journal of money, credit and banking, 2015, Vol. 47, No. 7, pp. 1339-1367
BRÜCKNER, Markus, PAPPA, Evi, News Shocks in the data : Olympic games and their macroeconomic effects, Journal of money, credit and banking, 2015, Vol. 47, No. 7, pp. 1339-1367 - https://hdl.handle.net/1814/39021
Retrieved from Cadmus, EUI Research Repository
We examine the macroeconomic effects of bidding for the Olympic Games using panel data for 188 countries during the period 1950–2009. Our findings confirm that economies react to news shocks: investment, consumption, and output significantly increase 9 to 7 years before the actual event in bidding countries. Hosting countries also experience significant increases in investment, consumption, and output 5 to 2 years before the hosting of the Games. Mapping the Olympics into a macroeconomic model, we show that we can match our empirical findings if we assume that an Olympic bid represents news about increases in government investment.
Article first published online: 29 SEP 2015.
Cadmus permanent link: https://hdl.handle.net/1814/39021
Full-text via DOI: 10.1111/jmcb.12247
ISSN: 1538-4616; 0022-2879
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