The Olympic Games As a News Shock: Macroeconomic Implications
Journal of Sports Economics, 19(6), 884-906, 2018
Posted: 5 Mar 2020
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
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