IDEAS home Printed from https://ideas.repec.org/a/sae/jospec/v19y2018i6p884-906.html

The Olympic Games as a News Shock

Author

Listed:
  • Viktoria C. E. Langer
  • Wolfgang Maennig
  • Felix Richter

Abstract

The awarding of the Olympic Games to a certain city or the announcement of a city’s Olympic bid may be considered as a news shock that affects agents’ market expectations. A news shock implies potential impacts on the dynamic adjustment process that change not only the volatility but also the long-run steady-state levels of endogenous economic variables. In this study, we contribute to and extend previous researchers’ attempts to empirically test for the Olympic Games as a news shock by implementing full structural models and by matching Olympic hosts and bidders to structurally similar countries.

Suggested Citation

  • Viktoria C. E. Langer & Wolfgang Maennig & Felix Richter, 2018. "The Olympic Games as a News Shock," Journal of Sports Economics, , vol. 19(6), pages 884-906, August.
    • Handle: RePEc:sae:jospec:v:19:y:2018:i:6:p:884-906
    DOI: 10.1177/1527002517690788
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1527002517690788
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1527002517690788?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Stephanie Schmitt‐Grohé & Martín Uribe, 2012. "What's News in Business Cycles," Econometrica, Econometric Society, vol. 80(6), pages 2733-2764, November.
    2. Robert C. Feenstra & Robert Inklaar & Marcel P. Timmer, 2015. "The Next Generation of the Penn World Table," American Economic Review, American Economic Association, vol. 105(10), pages 3150-3182, October.
    3. Dennis Coates & Brad R. Humphreys, 2008. "Do Economists Reach a Conclusion on Subsidies for Sports Franchises, Stadiums, and Mega-Events?," Working Papers 0818, International Association of Sports Economists;North American Association of Sports Economists.
    4. Günter Coenen & Christopher J. Erceg & Charles Freedman & Davide Furceri & Michael Kumhof & René Lalonde & Douglas Laxton & Jesper Lindé & Annabelle Mourougane & Dirk Muir & Susanna Mursula & Carlos d, 2012. "Effects of Fiscal Stimulus in Structural Models," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(1), pages 22-68, January.
    5. Wolfgang Maennig & Felix Richter, 2012. "Exports and Olympic Games," Journal of Sports Economics, , vol. 13(6), pages 635-641, December.
    6. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    7. World Bank, 2011. "World Development Indicators 2011," World Bank Publications - Books, The World Bank Group, number 2315, April.
    8. repec:ejw:journl:v:5:y:2008:i:3:p:294-315 is not listed on IDEAS
    9. Beaudry, Paul & Portier, Franck, 2004. "An exploration into Pigou's theory of cycles," Journal of Monetary Economics, Elsevier, vol. 51(6), pages 1183-1216, September.
    10. Robert J. Barro, 2003. "Determinants of Economic Growth in a Panel of Countries," Annals of Economics and Finance, Society for AEF, vol. 4(2), pages 231-274, November.
    11. Markus Brückner & Evi Pappa, 2015. "News Shocks in the Data: Olympic Games and Their Macroeconomic Effects," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 47(7), pages 1339-1367, October.
    12. Andrew K. Rose & Mark M. Spiegel, 2011. "The Olympic Effect," Economic Journal, Royal Economic Society, vol. 121(553), pages 652-677, June.
    13. World Bank, 2011. "Regional Highlights World Development Indicators 2011," World Bank Publications - Books, The World Bank Group, number 27344, April.
    14. Paul Beaudry & Franck Portier, 2006. "Stock Prices, News, and Economic Fluctuations," American Economic Review, American Economic Association, vol. 96(4), pages 1293-1307, September.
    15. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jeremy Wood & Samuel Meng, 2021. "The economic impacts of the 2018 Winter Olympics," Tourism Economics, , vol. 27(7), pages 1303-1322, November.
    2. Raffaello Bronzini & Sauro Mocetti & Matteo Mongardini, 2020. "The economic effects of big events: Evidence from the great jubilee 2000 in Rome," Journal of Regional Science, Wiley Blackwell, vol. 60(4), pages 801-822, September.
    3. Krystian M. Zawadzki & Marcin Potrykus, 2023. "Stock Markets’ Reactions to the Announcement of the Hosts. An Event Study in the Analysis of Large Sporting Events in the Years 1976–2032," Journal of Sports Economics, , vol. 24(6), pages 759-800, August.
    4. Stefan Szymanski & Bastien Drut, 2020. "The Private Benefit of Public Funding: The FIFA World Cup, UEFA European Championship, and Attendance at Host Country League Soccer," Journal of Sports Economics, , vol. 21(7), pages 723-745, October.
    5. Beckmann, Joscha & Boysen-Hogrefe, Jens & Groll, Dominik & Hoffmann, Timo & Jannsen, Nils & Kooths, Stefan & Schröder, Christian & Sonnenberg, Nils, 2024. "Deutsche Wirtschaft in Sommer 2024: Erholung kommt mühsam in Gang [German Economy Summer 2024: Recovery gets off to a slow start]," Kieler Konjunkturberichte 115, Kiel Institute for the World Economy.
    6. Wolfgang Maennig & Viktoria C. E. Schumann, 2022. "Prevention Effect of News Shocks in Anti-Doping Policies," Journal of Sports Economics, , vol. 23(4), pages 431-459, May.
    7. Firgo, Matthias, 2021. "The causal economic effects of Olympic Games on host regions," Regional Science and Urban Economics, Elsevier, vol. 88(C).
    8. Beckmann, Joscha & Jannsen, Nils, 2024. "Gesamtwirtschaftliche Auswirkungen von Fußball-Großveranstaltungen," Kiel Insight 2024.05, Kiel Institute for the World Economy.
    9. 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.
    10. Doerr, Leo M & Leppert, Elias B & Maennig, Wolfgang, 2025. "Olympic Games and democracy," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 1073-1091.
    11. Olmos, Lorena & Bellido, Héctor & Román-Aso, Juan A., 2020. "The effects of mega-events on perceived corruption," European Journal of Political Economy, Elsevier, vol. 61(C).
    12. Wifo, 2023. "WIFO-Monatsberichte, Heft 7/2023," WIFO Monatsberichte (monthly reports), WIFO, vol. 96(7), July.
    13. Jean-Jacques Gouguet & Christophe Lepetit, 2017. "The Economic Impact Of Euro 2016. Methodological Aspects," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 13(2), pages 153-171, settembre.
    14. Matthias Firgo & Oliver Fritz, 2023. "Regionalwirtschaftliche und touristische Effekte von Sportgroßveranstaltungen," WIFO Monatsberichte (monthly reports), WIFO, vol. 96(7), pages 481-490, July.
    15. Ivanov, Denis & Ashyrov, Gaygysyz, 2024. "Wealth inequality and mega events," European Journal of Political Economy, Elsevier, vol. 85(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Viktoria C. E. Langer & Wolfgang Maennig & Felix J. Richter, 2015. "News shocks in the data: Olympic Games and their macroeconomic effects – Reply," Working Papers 052, Chair for Economic Policy, University of Hamburg.
    2. Christopher Vierhaus, 2019. "The international tourism effect of hosting the Olympic Games and the FIFA World Cup," Tourism Economics, , vol. 25(7), pages 1009-1028, November.
    3. Olmos, Lorena & Bellido, Héctor & Román-Aso, Juan A., 2020. "The effects of mega-events on perceived corruption," European Journal of Political Economy, Elsevier, vol. 61(C).
    4. Caraballo-Cueto, Jose, 2025. "Does sovereignty help economic growth? A recent reassessment," World Development, Elsevier, vol. 185(C).
    5. Anna Laura Mancini & Giulio Papini, 2021. "All that glitters is not gold. An economic evaluation of the Turin Winter Olympics," Temi di discussione (Economic working papers) 1355, Bank of Italy, Economic Research and International Relations Area.
    6. Firgo, Matthias, 2021. "The causal economic effects of Olympic Games on host regions," Regional Science and Urban Economics, Elsevier, vol. 88(C).
    7. Ahmed, M. Iqbal & Cassou, Steven P., 2021. "Asymmetries in the effects of unemployment expectation shocks as monetary policy shifts with economic conditions," Economic Modelling, Elsevier, vol. 100(C).
    8. Metiu, Norbert, 2021. "Anticipation effects of protectionist U.S. trade policies," Journal of International Economics, Elsevier, vol. 133(C).
    9. Raffaello Bronzini & Sauro Mocetti & Matteo Mongardini, 2020. "The economic effects of big events: Evidence from the great jubilee 2000 in Rome," Journal of Regional Science, Wiley Blackwell, vol. 60(4), pages 801-822, September.
    10. Konstantinos Theodoridis & Francesco Zanetti, 2014. "News and labour market dynamics in the data and in matching models," Bank of England working papers 488, Bank of England.
    11. 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.
    12. Lambertini, Luisa & Mendicino, Caterina & Punzi, Maria Teresa, 2017. "Expectations-driven cycles in the housing market," Economic Modelling, Elsevier, vol. 60(C), pages 297-312.
    13. Florence Arestoff & Jérôme Sgard, 2012. "Education, pauvreté, inégalités : les relations économiques élémentaires," Sciences Po Economics Publications (main) hal-01054021, HAL.
    14. Hürtgen, Patrick, 2014. "Consumer misperceptions, uncertain fundamentals, and the business cycle," Journal of Economic Dynamics and Control, Elsevier, vol. 40(C), pages 279-292.
    15. Shoag, Daniel & Veuger, Stan, 2017. "Taking My Talents to South Beach (and Back)," Working Paper Series rwp17-019, Harvard University, John F. Kennedy School of Government.
    16. Matsumoto, Akito & Cova, Pietro & Pisani, Massimiliano & Rebucci, Alessandro, 2011. "News shocks and asset price volatility in general equilibrium," Journal of Economic Dynamics and Control, Elsevier, vol. 35(12), pages 2132-2149.
    17. Paul Beaudry & Franck Portier, 2014. "News-Driven Business Cycles: Insights and Challenges," Journal of Economic Literature, American Economic Association, vol. 52(4), pages 993-1074, December.
    18. Barış Soybilgen & Huseyin Kaya & Dincer Dedeoglu, 2019. "Evaluating the effect of geopolitical risks on the growth rates of emerging countries," Economics Bulletin, AccessEcon, vol. 39(1), pages 717-725.
    19. Zeno Enders & Franziska Hünnekes & Gernot Müller, 2022. "Firm Expectations and Economic Activity," Journal of the European Economic Association, European Economic Association, vol. 20(6), pages 2396-2439.
    20. Rousakis, Michael, "undated". "Expectations and Fluctuations: The Role of Monetary Policy," Economic Research Papers 270655, University of Warwick - Department of Economics.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jospec:v:19:y:2018:i:6:p:884-906. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.