Abstract
This paper investigates whether hosting the Olympic Games will improve economic well being of host countries. It is shown that the economic benefits of hosting the Games can last for up to 16 years. The economy of the host country improves after announcement of successful bid. The improvement peaks in the year of the Games and remains significant for 8 years after the Games.
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Notes
Some host countries allow a full set of Olympic dummies, from 7 years before the host years to 9 years after the Games, to be equal to one in the respective years, whereas the Olympic hosts near the end of the sample timeframe only permit a segment of Olympic dummies to be equal to one. Taking 2012 Olympics as an example of segmented dummies, it allows pre-Olympic dummies from 2005 onwards to be equal to one, zero otherwise.
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Acknowledgments
We would like to thank the editor, an anonymous referee, and Wing Suen for helpful comments, and Mansfield Wong, April Shing, Derek Wang, Joyce Liu, Audrey Wang and Tin Yan Ho for able research assistance. Any remaining errors are ours.
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Chong, T.T.L., Hui, P.H. The Olympic Games and the Improvement of Economic Well Being. Applied Research Quality Life 8, 1–14 (2013). https://doi.org/10.1007/s11482-012-9176-8
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DOI: https://doi.org/10.1007/s11482-012-9176-8