Was the 2014 FIFA World Cup a blessing or a curse for Brazil? And could the hosting states benefit from the tournament in an economic recession? This study investigates whether the World Cup was a catalyst for Brazil’s economic downturn, after a prosperous decade of poverty reduction,...

Prominent economic theories have emphasized the role of commonly held perceptions and expectations for determining macroeconomic outcomes. A key empirical question is how such collectively held beliefs are formed. We use the FIFA World Cup 2006 as a natural experiment. We provide direct evidence...