The Olympic Games As a News Shock: Macroeconomic Implications

Journal of Sports Economics, 19(6), 884-906, 2018

Posted: 5 Mar 2020

See all articles by Viktoria Langer

Viktoria Langer

Independent

Wolfgang Maennig

Universität Hamburg, Faculty of Business, Economics and Social Sciences

Felix Richter

University of Hamburg - School of Business, Economics and Social Sciences

Date Written: 2018

Abstract

The awarding of the Olympic Games to a certain city or the announcement of a city’s Olympic bid may be considered as a news shock that affects agents’ market expectations. A news shock implies potential impacts on the dynamic adjustment process that change not only the volatility but also the long-run steady-state levels of endogenous economic variables. In this study, we contribute to and extend previous researchers’ attempts to empirically test for the Olympic Games as a news shock by implementing full structural models and by matching Olympic hosts and bidders to structurally similar countries.

Keywords: anticipated shock, Olympic Games, GDP growth, matching, entropy balancing, mega event

Suggested Citation

Langer, Viktoria and Maennig, Wolfgang and Richter, Felix, The Olympic Games As a News Shock: Macroeconomic Implications (2018). Journal of Sports Economics, 19(6), 884-906, 2018, Available at SSRN: https://ssrn.com/abstract=3532327

Viktoria Langer

Independent ( email )

Wolfgang Maennig (Contact Author)

Universität Hamburg, Faculty of Business, Economics and Social Sciences ( email )

Von-Melle-Park 5
Hamburg, 20146
Germany

Felix Richter

University of Hamburg - School of Business, Economics and Social Sciences ( email )

Von-Melle-Park 5
Hamburg, D-20146
Germany

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