經濟與管理論叢(Journal of Economics and Management)  
  Volume 12, No. 2  
  August, 2016  
     
 

A Fiscal View on Analyzing the Impact of

 
  Organizing Mega Sporting Events  
     
 

Sheng-Tung Chen

 
  Department of Public Finance, Feng Chia University, Taiwan  
   
 

Abstract

 

This paper focuses on explaining the Post Olympic Effect on mega sporting events which include the Summer Olympic Games and the FIFA World Cup. By applying the neoclassical one-sector aggregate production function model and Hansen’s threshold model (1996, 2000) to analyze the impact of organizing mega sporting events, the hypothesis of the Armey curve (1995) is investigated. Data for countries hosting the Summer Olympic Games and the FIFA World Cup over the period from 1980 to 2008 are collected. The empirical results show that 7 of 13 countries support the hypothesis of the Armey curve and the Post Olympic Effect is found to occur in France and Italy with an over-expansion in government size as far as FIFA is concerned. The effect is partially supported in Greece, Spain, and South Korea as the Summer Olympic Games are considered with an over-expansion in government size.

   

 

 

Keywords: sporting events, critical government size, threshold model

 

 

JEL classification:  H54, H61

 

 
   

 

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