For an Olive Wreath? Olympic Games and Anticipation Effects in Macroeconomics

We examine the effects that hosting and bidding for the Olympic Games has on macroeconomic outcomes in a panel of 184 countries spanning the period 1950-2006. Actual hosting of the Games generates positive investment, consumption, and output responses before, during, and after hosting. We detect anticipation effects: (i) bidding for the Olympic Games generates positive investment, consumption, and output responses at the time of the bidding; (ii) bidding for the Games has a transitory level effect. We confirm the presence of legacy effects: hosting the Games has a permanent level effect.