TY - JOUR
T1 - News Shocks in the Data: Olympic Games and Their Macroeconomic Effects
AU - Brückner, Markus
AU - Pappa, Evi
PY - 2015/1/1
Y1 - 2015/1/1
N2 - © 2015 The Ohio State University. 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.
AB - © 2015 The Ohio State University. 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.
KW - Anticipation
KW - Mega event
KW - News shocks
UR - https://www.scopus.com/pages/publications/84942510859
U2 - 10.1111/jmcb.12247
DO - 10.1111/jmcb.12247
M3 - Article
SN - 0022-2879
VL - 47
SP - 1339
EP - 1367
JO - Journal of money, credit and banking
JF - Journal of money, credit and banking
IS - 7
ER -