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

publication date

  • September 2015

start page

  • 1339

end page

  • 1367


  • 7


  • 47

International Standard Serial Number (ISSN)

  • 0022-2879

Electronic International Standard Serial Number (EISSN)

  • 1538-4616


  • 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.


  • Economics


  • news shocks; mega event; anticipation