News Shocks in the Data: Olympic Games and Their Macroeconomic Effects

Markus Brückner, Evi Pappa

Research output: Contribution to journalArticleResearchpeer-review

25 Citations (Scopus)


© 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.
Original languageEnglish
Pages (from-to)1339-1367
JournalJournal of money, credit and banking
Issue number7
Publication statusPublished - 1 Jan 2015


  • Anticipation
  • Mega event
  • News shocks


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