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Economic Multipliers and Mega-Event Analysis

Author

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  • Victor Matheson

    (Department of Economics, College of the 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 how mega-events may lead to inflated multipliers and exaggerated claims of economic benefits.

Suggested Citation

  • Victor Matheson, 2004. "Economic Multipliers and Mega-Event Analysis," Working Papers 0402, College of the Holy Cross, Department of Economics.
    • Handle: RePEc:hcx:wpaper:0402
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    File URL: https://hcapps.holycross.edu/hcs/RePEc/hcx/HC0402-Matheson_Multipliers.pdf
    File Function: Preliminary version, 2004
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    References listed on IDEAS

    as
    1. John J. Siegfried & Andrew Zimbalist, 2000. "The Economics of Sports Facilities and Their Communities," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 95-114, Summer.
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    Citations

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    Cited by:

    1. Robert Baumann & Victor Matheson & Chihiro Muroi, 2008. "Bowling in Hawaii: Examining the Effectiveness of Sports-Based Tourism Strategies," Working Papers 0808, College of the Holy Cross, Department of Economics.
    2. Douglas Barrios & Stuart Russell & Matt Andrews, 2016. "Bringing Home the Gold? A Review of the Economic Impact of Hosting Mega-Events," CID Working Papers 320, Center for International Development at Harvard University.
    3. Robert Baade & Robert Baumann & Victor Matheson, 2007. "Down, Set, Hike: The Economic Impact of College Football Games on Local Economies," Working Papers 0702, College of the Holy Cross, Department of Economics.
    4. 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.
    5. 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.
    6. 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.
    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 Baumann & Victor Matheson & Chihiro Muroi, 2008. "Bowling in Hawaii: Examining the Effectiveness of Sports-Based Tourism Strategies," Working Papers 0807, International Association of Sports Economists;North American Association of Sports Economists.
    9. 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.
    10. 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.
    11. 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.
    12. Robert W. Baumann & Victor A. Matheson & Chihiro Muroi, 2009. "Bowling in Hawaii," Journal of Sports Economics, , vol. 10(1), pages 107-123, February.
    13. Robert Baade & Robert Baumann & Victor Matheson, 2008. "Rejecting “Conventional” Wisdom: Estimating the Economic Impact of National Political Conventions," Working Papers 0804, College of the Holy Cross, Department of Economics.
    14. Robert Baade & Robert Baumann & Victor Matheson, 2007. "Down, Set, Hike: The Economic Impact of College Football Games on Local Economies," Working Papers 0701, International Association of Sports Economists;North American Association of Sports Economists.
    15. Robert Baade & Robert Baumann & Victor Matheson, 2006. "Selling the Big Game: Estimating the Economic Impact of Mega-Events through Taxable Sales," Working Papers 0610, International Association of Sports Economists;North American Association of Sports Economists.
    16. Robert Baade & Robert Baumann & Victor Matheson, 2005. "Predicting the Path to Recovery from Hurricane Katrina through the Lens of Hurricane Andrew and the Rodney King Riots," Working Papers 0515, College of the Holy Cross, Department of Economics.
    17. Victor Matheson, 2006. "Mega-Events: The effect of the world’s biggest sporting events on local, regional, and national economies," Working Papers 0610, College of the Holy Cross, Department of Economics.

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    More about this item

    Keywords

    economic impact; sports; sport economics; mega-events;
    All these keywords.

    JEL classification:

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

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