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Economic Multipliers and Mega-Event Analysis

Author

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  • Victor Matheson

    (College of Holy Cross)

Abstract

Critics of economic impact studies that purport to show that mega-events such as the Olympics bring large benefits to the communities “lucky” enough to host them frequently cite the use of inappropriate multipliers as a primary reason why these impact studies overstate the true economic gains to the hosts of these events. This brief paper shows in a numerical example one way in which mega-events may lead to inflated multipliers and exaggerated claims of economic benefits.

Suggested Citation

  • Victor Matheson, 2009. "Economic Multipliers and Mega-Event Analysis," International Journal of Sport Finance, Fitness Information Technology, vol. 4(1), pages 63-70, February.
    • Handle: RePEc:jsf:intjsf:v:4:y:2009:i:1:p:63-70
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    2. Robert W. Baumann & Victor A. Matheson & Chihiro Muroi, 2009. "Bowling in Hawaii," Journal of Sports Economics, , vol. 10(1), pages 107-123, February.
    3. Douglas Barrios & Stuart Russell & Matt Andrews, 2016. "Bringing Home the Gold? A Review of the Economic Impact of Hosting Mega-Events," Growth Lab Working Papers 78, Harvard's Growth Lab.
    4. Robert A. Baade & Robert W. Baumann & Victor A. Matheson, 2008. "Assessing the Economic Impact of College Football Games on Local Economies," Journal of Sports Economics, , vol. 9(6), pages 628-643, December.
    5. Victor Matheson, 2004. "Is Smaller Better? A Comment on "Comparative Economic Impact Analyses" by Michael Mondello and Patrick Rishe," Working Papers 0407, College of the Holy Cross, Department of Economics.
    6. Victor A. Matheson, 2006. "Is Smaller Better? A Comment on “Comparative Economic Impact Analyses†by Michael Mondello and Patrick Rishe," Economic Development Quarterly, , vol. 20(2), pages 192-195, May.
    7. Michał Marcin Kobierecki & Michał Pierzgalski, 2022. "Sports Mega-Events and Economic Growth: A Synthetic Control Approach," Journal of Sports Economics, , vol. 23(5), pages 567-597, June.
    8. Robert Baade & Robert Baumann & Victor Matheson, 2005. "Selling the Big Game: Estimating the Economic Impact of Mega-Events through Taxable Sales," Working Papers 0510, College of the Holy Cross, Department of Economics.
    9. Robert A. Baade & Robert Baumann & Victor Matheson, 2007. "Estimating the Economic Impact of Natural and Social Disasters, with an Application to Hurricane Katrina," Urban Studies, Urban Studies Journal Limited, vol. 44(11), pages 2061-2076, October.
    10. Biao He & Lianxin Zhu & Xiaomei Cai & Jun (Justin) Li & Hong Zhu, 2020. "Examining the Impacts of Mega-Events on Urban Development Using Coupling Analysis: A Case Study of the Boao Forum for Asia," Sustainability, MDPI, vol. 12(2), pages 1-14, January.
    11. Robert A Baade & Robert Baumann & Victor A Matheson, 2009. "Rejecting “Conventional” Wisdom: Estimating the Economic Impact of National Political Conventions," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 35(4), pages 520-530.
    12. Victor Matheson, 2006. "Mega-Events: The effect of the world’s biggest sporting events on local, regional, and national economies," Working Papers 0622, International Association of Sports Economists;North American Association of Sports Economists.

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    Keywords

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    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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