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

Brückner, Markus; Pappa, Evi

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

CEPR Discussion Paper No. DP8516

42 Pages Posted: 12 Aug 2011

See all articles by Markus Brückner

Evi Pappa

London School of Economics & Political Science (LSE); Autonomous University of Barcelona - Department of Economics and Economic History

Date Written: August 2011

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.

Keywords: Anticipation, Mega Event, Natural Experiment

JEL Classification: E62, E65

Suggested Citation: Suggested Citation

Brückner, Markus and Pappa, Paraskevi (Evi), For an Olive Wreath? Olympic Games and Anticipation Effects in Macroeconomics (August 2011). CEPR Discussion Paper No. DP8516, Available at SSRN: https://ssrn.com/abstract=1908564