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Abstract

Local, state, and federal governments, along with the Salt Lake City Organizing Committee, spent roughly $1.9 billion in planning and hosting the 2002 Winter Olympic Games. Event promoters suggested that the Games would increase employment in the state by 35,000 job-years. We investigate whether the 2002 Winter Olympics actually increased employment finding that the Games’ impact was a fraction of that claimed by the boosters. While the Salt Lake City Olympics did increase employment overall by between 4,000 and 7,000 jobs, these gains were concentrated in the leisure industry, and the Games had little to no effect on employment after 12 months.

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... Empirical evidence mostly reports little to no economic impact of hosting the Olympic Games on employment [12][13][14] or on taxable sales [15,16]. Baade and Matheson [2] explain this with substitution and crowding-out effects, which indicate that positive spending on Olympic-related goods and services were just substituted from other spending (substitution effect), and regular tourists or business travelers tend to avoid the Olympic periods due to large crowds (crowding-out effect). ...
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This study investigates the effects of the Olympic announcement and the actual event on property values in the host region using the case of the 2018 PyeongChang Winter Olympic Games. We collected Korean government-issued apartment transaction data in the host city, Gangneung, and other cities. We performed propensity score matching to generate a suitable control group compared to units in Gangneung and exploited difference-in-difference analyses to test the impact of the announcement and the actual event separately. The results show that the Olympic announcement increased property values in Gangneung by 5.5% compared to propensity-matched units, and the effects are mostly shown in units in downtown Gangneung. Units close to the KTX station and the Olympic arena observed additional increases in housing prices. During the actual Olympic event, property values in Gangneung increased by 8.3% after the KTX station opened, but the actual event period and Athletes’ Village opening did not generate additional effects. The additional increases in housing prices close to the opening of the KTX station were found for units close to the KTX station, the Olympic arena, and Athletes’ Village.
... Employment was also subject to research by Johnson (2020), who observed by the example of the Olympics in Los Angeles, Atlanta, and Salt Lake City that hosting the Games may generate transitory increases in employment growth, although in Los Angeles County transitory decreases in the employment growth rate were observed. Similar results were acquired by Baumann et al. (2012), who observed that the Salt Lake City Olympics led to an increase in jobs, though far less than suggested by the promoters of the event and the effect vanished within a year after the Games. The effects of sports mega-events on employment were subject to a certain scientific debate. ...
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This paper contributes to the current literature investigating whether hosting sports mega-events brings tangible economic benefits to the host country. Specifically, we examine whether staging the Olympic Games and the FIFA World Cups leads to observable economic growth. The research has been conducted through a quasi-experimental study in the spirit of the difference-indifferences method. The research subject includes states in which the Olympic Games and FIFA World Cup were held between 2010 and 2016: Canada, South Africa, Great Britain, and Brazil. We found that there is no significant effect of hosting sports mega-events on economic growth.
... Domestic sponsors, all of them heavily relying on some form of spectator interactions on-site, might not even reach their audiences (c.f., Kirby, 2021). For the host city, Tokyo, and the nearby prefectures, the decision to ban spectators from most Olympic venues may not only further decrease the few tangible economic benefits from hosting such mega sports events (e.g., Allmers and Maennig, 2009;Baade & Matheson, 2004;Baumann et al., 2012;Feddersen & Maennig, 2013;Li et al., 2013) but also potentially reduce sporting home advantage, as recent research suggests from studying the causal effects of absent crowds in professional football (e.g., Bryson et al., 2021;Fischer & Haucap, 2021;Reade et al., 2020). 3 1 As Toshiro Muto, the chief executive of the Tokyo 2020 organizing committee, noted, more than 600,000 tickets purchased by international spectators from overseas had to be refunded (Reuters, 2021b). 2 For these media-right owners, there might also be additional unexpected costs associated with broadcasting Olympic Games without any spectators, as some might want to increase the otherwise lost atmosphere by artificially enhancing the original broadcasting signal during the production process (e.g., by adding canned spectator atmosphere or virtualized spectators in the stands). ...
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We revisit the magnitude of home advantage at the Summer and Winter Olympic Games, looking back all the way to Athens in 1896. By comparing a host country’s success with their performances in previous and subsequent games, we find that home advantage has declined over time as participation and the diversity of competition have increased. Hosts of the Summer Olympics between 1988 and 2016 enjoyed a two-percentage-point boost in their shares of medals and finalists, compared with their performances overseas, in both men's and women's events. In this same contemporary period, the home advantage effect at the Winter Olympics was around fifty percent larger in men's events but non-existent in women's events. We also find evidence of significant performance spill overs on the previous and next Olympiads for countries when they hosted the Summer Games.
... The authors used data for 43 U.S. metropolitan statistical areas for the period 1987-2006, and analysed the impact of tourism inflows (proxied using the number of hotel rooms sold) on employment in 22 non-hotel industries. Another study, however, by Baumann et al. (2012), found that while the Salt Lake City Olympics did increase employment overall by between 4,000 and 7,000 jobs, those gains were concentrated in the leisure industry, and the Games had little to no effect on employment 12 months later. ...
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This paper presents specification tests that are applicable after estimating a dynamic model from panel data by the generalized method of moments (GMM), and studies the practical performance of these procedures using both generated and real data. Our GMM estimator optimally exploits all the linear moment restrictions that follow from the assumption of no serial correlation in the errors, in an equation which contains individual effects, lagged dependent variables and no strictly exogenous variables. We propose a test of serial correlation based on the GMM residuals and compare this with Sargan tests of over-identifying restrictions and Hausman specification tests.
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Olympic Games may have impacts on income and employment in the host city, but no ex post study has been carried out for European Olympic host cities to date. The present study closes this gap using the 1972 Munich Olympic Games. The data period examined in this study allows for analysis of long-term effects. In addition, the methodology avoids overestimating the significance of the effects. Finally, we report results for all possible combinations of pre- and post-Olympic periods. The results: income in Olympic regions grew significantly faster than in other German regions. In contrast, no employment effects were identified.
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Baade R. A. and Matheson V. A. (2004) The quest for the cup: assessing the economic impact of the World Cup, Reg. Studies 38, 343-354. Hosting the World Cup, the world's second largest sporting event, is a potentially expensive affair. The co-hosts of the 2002 games, Japan and South Korea, spent a combined US$4 billion building new facilities or refurbishing old facilities in preparation for the event. An ex post analysis of the 1994 World Cup held in the US suggests that the economic impact of the event cannot justify this magnitude of expenditures and that host cities experienced cumulative losses of $5·5 to $9·3 billion as opposed to ex ante estimates of a $4 billion gain touted by event boosters. Potential hosts should consider with care whether the award of the World Cup is an honour or a burden.
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This study demonstrates that the Football World Cup 1974 in Germany was not able to generate any medium to long-term employment effects that were significantly different from zero. It is the first work to examine the employment effects of Football World Cup tournaments. It is also the first work to undertake a multivariate analysis of the employment effects of a major sporting event outside of the USA. In addition, this study does not arbitrarily determine the time period for the potential positive effects of a major sporting event but instead examines several alternative periods. Furthermore, the study tests for method sensitivity by analysing the data set in parallel with the approaches used in the studies of sporting events in the USA as well as in a fourth modifying estimation approach. In contrast to the conclusions reached in comparable studies, the results are not regarded as a clear refutation of the positive effects of major sporting events.
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This paper studies estimators that make sample analogues of population orthogonality conditions close to zero. Strong consistency and asymptotic normality of such estimators is established under the assumption that the observable variables are stationary and ergodic. Since many linear and nonlinear econometric estimators reside within the class of estimators studied in this paper, a convenient summary of the large sample properties of these estimators, including some whose large sample properties have not heretofore been discussed, is provided.
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This paper examines whether electoral motives and government ideology influence short-term economic performance. I employ data on annual GDP growth in 21 OECD countries over the 1951-2006 period and provide a battery of empirical tests. In countries with two-party systems GDP growth is boosted before elections and, under leftwing governments, in the first two years of a legislative period. These findings indicate that political cycles are more prevalent in two-party systems because voters can clearly punish or reward political parties for governmental performance. My findings imply that we need more elaborate theories of how government ideology and electoral motives influence short-term economic performance.
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This paper considers estimation and testing of vector autoregressio n coefficients in panel data, and applies the techniques to analyze the dynamic relationships between wages an d hours worked in two samples of American males. The model allows for nonstationary individual effects and is estimated by applying instrumental variables to the quasi-differenced autoregressive equations. The empirical results suggest the absence of lagged hours in the wage forecasting equation. The results also show that lagged hours is important in the hours equation. Copyright 1988 by The Econometric Society.
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"Most studies of mega-events such as Olympic Games find a relatively small impact on the cities that host them. One reason given for this finding is that the event displaces tourists who otherwise would have come to the city. This paper documents such displacement by showing that expenditure at ski resorts in Colorado rose as a result of the 2002 Winter Olympic Games. In addition to supporting previous studies, the spillover effect suggests that cities and states that gain from spillovers might want to support bids for events by nearby cities." Copyright (c) 2008 Western Economic Association International.
  • R Baade
  • R Baumann
  • V Matheson
Baade, R., R. Baumann, V. Matheson (2010), Slippery Slope? Assessing the Economic Impact of the 2002 Winter Olympic Games in Salt Lake City, Utah. Region et Développment 31: 81-91.
  • International Olympic Committee
International Olympic Committee (2002), Salt Lake City Winter Olympic Games 2002: Global Television Report. June 17, 2002. International Olympic Committee (2010), Factsheet: Legacies of the Games, Update -January 2010. Can be downloaded at http://www.olympic.org/Documents/Reference_documents_-Factsheets/Legacy.pdf (webpage dated January 2010, last retrieved June 1, 2010).
Olympic economic impacts much smaller than promised. The Tyee
  • A Macleod
MacLeod, A. (2010), Olympic economic impacts much smaller than promised. The Tyee. Can be downloaded at http://thetyee.ca/Blogs/TheHook/Olympics2010/2010/02/25/OlympicImpacts/ (webpage dated February 25, 2010, last retrieved June 1, 2010).
Intervention Analysis with Applications to Economic and Environ - mental Problems Robert Baumann Bryan Engelhardt and The Effect of Professional Sports on Earnings and Employ - ment in the Services and Retail Sectors in US Cities
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