The Olympic Dream - Value or Waste
(2024) NEKH02 20241Department of Economics
- Abstract
- This paper takes a macroeconomic approach to evaluating whether or not the Olympic games
are beneficial for the host country. Using existing literature, it breaks down the different costs
and benefits that the hosts must balance for the games to be successful from an economic
perspective. The costs mostly consist of organising costs, general infrastructure, and sporting
infrastructure whilst the benefits come from direct revenue such as tickets and sponsorships,
economic stimulus from government spending, and psychological factors such as marketing
and “feel-good” effects. The paper further discusses the economic theory of government
spending as economic stimulus and the benefits of investment in infrastructure. Finally, a
model is... (More) - This paper takes a macroeconomic approach to evaluating whether or not the Olympic games
are beneficial for the host country. Using existing literature, it breaks down the different costs
and benefits that the hosts must balance for the games to be successful from an economic
perspective. The costs mostly consist of organising costs, general infrastructure, and sporting
infrastructure whilst the benefits come from direct revenue such as tickets and sponsorships,
economic stimulus from government spending, and psychological factors such as marketing
and “feel-good” effects. The paper further discusses the economic theory of government
spending as economic stimulus and the benefits of investment in infrastructure. Finally, a
model is formed in which the different benefits and cost are added up and this is then used for
evaluating recent Olympics. There are many problems with evaluating Olympics games due
to the lack of data and the difficulty in estimating certain variables. Attempting to do so
however reveals a range of both beneficial and detrimental games that differ massively in
costs and that bring value in different ways. There is therefore no single principal that decides
if the Olympic games are of benefit for the host country but rather a rage of factors that need
to be considered. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9165654
- author
- Larsson, Axel LU
- supervisor
- organization
- course
- NEKH02 20241
- year
- 2024
- type
- M2 - Bachelor Degree
- subject
- keywords
- Olympics, Mega-event, Guvernement spending multiplier
- language
- English
- id
- 9165654
- date added to LUP
- 2024-09-24 09:01:56
- date last changed
- 2024-09-24 09:01:56
@misc{9165654,
abstract = {{This paper takes a macroeconomic approach to evaluating whether or not the Olympic games
are beneficial for the host country. Using existing literature, it breaks down the different costs
and benefits that the hosts must balance for the games to be successful from an economic
perspective. The costs mostly consist of organising costs, general infrastructure, and sporting
infrastructure whilst the benefits come from direct revenue such as tickets and sponsorships,
economic stimulus from government spending, and psychological factors such as marketing
and “feel-good” effects. The paper further discusses the economic theory of government
spending as economic stimulus and the benefits of investment in infrastructure. Finally, a
model is formed in which the different benefits and cost are added up and this is then used for
evaluating recent Olympics. There are many problems with evaluating Olympics games due
to the lack of data and the difficulty in estimating certain variables. Attempting to do so
however reveals a range of both beneficial and detrimental games that differ massively in
costs and that bring value in different ways. There is therefore no single principal that decides
if the Olympic games are of benefit for the host country but rather a rage of factors that need
to be considered.}},
author = {{Larsson, Axel}},
language = {{eng}},
note = {{Student Paper}},
title = {{The Olympic Dream - Value or Waste}},
year = {{2024}},
}