Economic analysis of mega events: a discourse of method

Journal title ARCHIVIO DI STUDI URBANI E REGIONALI
Author/s Jérôme Massiani
Publishing Year 2021 Issue 2021/130
Language French Pages 23 P. 140-162 File size 5820 KB
DOI 10.3280/ASUR2021-130008
DOI is like a bar code for intellectual property: to have more infomation click here

Below, you can see the article first page

If you want to buy this article in PDF format, you can do it, following the instructions to buy download credits

Article preview

FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.

We compare three methods for evaluating the impacts of a mega-event: Input-Output, CGE and CBA. IO has limitations due its insufficient consideration of substitution and saturation effects. CBA requires more methodological consistency. CGE appears very promising but it does not always sufficiently consider specificities of mega-events. The two last methods must improve in order to reach a convincing analysis and it would benefit from being combined with CBA to provide a more complete picture.

Confrontiamo tre metodi disponibili per valutare l’impatto di un grande evento: Input-Output, Computable General Equilibrium e Analisi Costi-Benefici. L’IO ha limiti legati all’insufficiente considerazione degli effetti di sostituzione e di saturazione. L’ACB necessi-ta probabilmente un’ulteriore maturazione metodologica. Il CGE è promittente ma sembra necessaria una maggiore considerazione delle specificità dei grandi eventi e un avvicina-mento con l’ACB per giungere a una valutazione complessiva.

Keywords: Input Output; Cost-Benefit Analysis; Computable General Equilibrium; Mega-events.

  1. Abelson P. (2011). Evaluating Major Events and Avoiding the Mercantilist Fallacy. Economic Papers: A journal of applied economics and policy, 30(1): 48-59.
  2. Abraham-Frois G. and Lendjel E. (2001). Une première application du théorème de Perron-Frobenius à l’économie: l’abbé Potron comme précurseur. Revue d’économie politique, 111(4): 639-665.
  3. Ackerman F. and Heinzerling L. (2005). Priceless: On Knowing the Price of Everything and the Value of Nothing. New York: The New Press.
  4. ACT – Auditor-General’s Office (2002). V8 Car Races in Canberra - Cost and benefits. Canberra: Auditor-General Australian Capital Territory.
  5. Allan G., Lecca P. and Swales J.K. (2014). The impacts of temporary and anticipated tourism spending. University of Strathclyde Business School, Department of Economics. -- Consulté à l’adresse: http://econpapers.repec.org/paper/strwpaper/1406.htm
  6. Andersson T.D., Armbrecht J. and Lundberg E. (2008). Impact of Mega-Events on the Economy. Asian Business & Management, 7(2): 163-179.
  7. Arup and Insignia Richard Ellis (2002). London Olympics 2012 Costs and Benefits (p. 13). A report for the UK Government, the Mayor of London (GLA), the London Development Agency (LDA), the British Olympic Association (BOA), UK Sport and Sport England. Consulté à l’adresse: https://opus.lib.uts.edu.au/handle/10453/19775
  8. Baade R.A. (1987). Is there an economic rationale for subsidizing sports stadiums? Chicago: Heartland Institute.
  9. Baade R.A. and Matheson V. (2002). Bidding for the Olympics: Fools Gold? In: Barros C.P., Ibrahimo M. and Szymanski S., eds., Transatlantic Sport: The Comparative Economics of North American and European Sports. Cheltenham: Edward Elgar Publishing, 127-151.
  10. Banerjee O., Cicowiez M. and Moreda A. (2017). Reconciliation Once and For All: Economic Impact Evaluation and Social Cost Benefit Analysis. CEDLAS, Working Papers No. 0207. La Plata: CEDLAS, Universidad Nacional de La Plata. -- Consulté à l’adresse: https://ideas.repec.org/p/dls/wpaper/0207.html
  11. Barajas A., Salgado J. y Sánchez P. (2012). Problemática de los estudios de impacto económico de eventos deportivos. Estudios de Economía Aplicada.
  12. Bartolomeo G.D., Fedeli S. e Tancioni M. (2019). Candidatura di Milano e Cortina per le Olimpiadi e Paralimpiadi invernali 2026: Analisi di impatto economico finanziario. Roma: Sapienza, Università di Roma.
  13. Belykh A.A. (1989). A Note on the Origins of Input-Output Analysis and the Contribution of the Early Soviet Economists: Chayanov, Bogdanov and Kritsman. Soviet Studies, 41(3): 426-429.
  14. Blake A. (2005). Economic impact of the London 2012 Olympics. -- Consulté à l’adresse https://opus.lib.uts.edu.au/handle/2100/994
  15. Boadway R.W. (1975). Cost-benefit Rules in General Equilibrium. The Review of Economic Studies, 42(3): 361-374.
  16. Boardman A.E., Greenberg D.H., Vining A.R. and Weimer D. (2006). Cost-Benefit Analysis: Concepts and Practice. New Jersey: Pearson, Prentice Hall.
  17. Bohlmann H.R. and van Heerden J.H. (2005). The Impact of Hosting a Major Sport Event on the South African Economy. University of Pretoria Working Paper: 2005-09, November.
  18. Bos F. and Zwaneveld P. (2017). Cost-benefit analysis for flood risk management and water governance in the Netherlands; an overview of one century. MPRA Paper No. 80933. Munich: University Library of Munich. Consulté à l’adresse: https://ideas.repec.org/p/pra/mprapa/80933.html
  19. Centre for Regional Economic Analysis and Arthur Andersen (1999). Economic impact study of the Sydney 2000 Olympic Games. Sydney.
  20. Crompton J.L. (1995). Economic Impact Analysis of Sports Facilities and Events: Eleven Sources of Misapplication. Journal of Sport Management, 9: 14-35.
  21. Dallmann B. (1988). Nutzen-Kosten-Untersuchung einer kommunalen Grossveranstaltung: dargestellt am Beispiel der Landesgartenschau Freiburg 1986. Freiburg im Breisgau: R. Haufe.
  22. de Boer W.I.J., Koning R.H. and Mierau J.O. (2018). Ex Ante and Ex Post Willingness to Pay for Hosting a Large International Sport Event. Journal of Sports Economics. DOI: 10.1177/152700251877144
  23. de Nooij M. (2014). Economic Impact Analysis versus Cost Benefit Analysis for a Medium Sized Sport Event – A Further Improvement. Consulté à l’adresse https://papers.ssrn.com/abstract=2393427
  24. de Nooij M., van den Berg M. and Koopmans C. (2013). Bread or Games?: A Social Cost-Benefit Analysis of the World Cup Bid of the Netherlands and the Winning Russian Bid. Journal of Sports Economics, 14(5): 521-545. DOI: 10.1177/152700251142982
  25. Dobes L. (2008). A century of Australian cost-benefit analysis. Office of Best Practice Regulation, Working Paper.
  26. Dolan P., Kavetsos G., Krekel C., Mavridis D., Metcalfe R., Senik C. and Szymanski S. (2016). The Host with the Most? The Effects of the Olympic Games on Happiness Working Papers No. 70. London: Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research. Consulté à l’adresse: -- https://ideas.repec.org/p/cgs/wpaper/70.html
  27. Domingues E.P., Betarelli Junior A.A. e Magalhães A.S. (2010). Copa do Mundo 2014: impactos econômicos no Brasil, em Minas Gerais e Belo Horizonte (World Cup 2014: economic impact in Brasil, in Minas Gerais and Belo Horizonte). Belo Horizonte: CEDEPLAR, Universidade Federal de Minas Gerais.
  28. Dupuis X. (1985). Applications and Limitations of cost-benefit analysis as applied to cultural development. No. CC/CSP/CP/12-CC/88/WS/33. Paris: UNESCO
  29. Dwyer L. and Forsyth P. (2009). Public Support for Special Events. Eastern Economic Journal, 4: 481-499.
  30. Dwyer L. and Forsyth P. (2019). Evaluating Special Events: Merging Two Essential Approaches. Event Management, 23(6): 897-911. DOI: 10.3727/152599519X1550625985641
  31. Dwyer L., Jago L. and Forsyth P. (2016). Economic evaluation of special events: Reconciling economic impact and cost-benefit analysis. Scandinavian Journal of Hospitality and Tourism, 16(2): 115-129. DOI: 10.1080/15022250.2015.111640
  32. Economics Research Associates (1984). Economic Impact of the 1984 Olympic Games in Los Angeles and Southern California. Los Angeles: Los Angeles Olympic Organizing Committee.
  33. Ergas H. (2009). In Defence of Cost-Benefit Analysis. Agenda: A Journal of Policy Analysis and Reform, 16(3): 31-40.
  34. Ernst & Young (2011). The economic impact of the 2011 Formula 1 Australian Grand Prix (Archived website). -- Consulté à l’adresse: http://trove.nla.gov.au/version/197830579
  35. Heldt T. and Mortazavi R. (2016). Estimating and comparing demand for a music event using stated choice and actual visitor behaviour data. Scandinavian Journal of Hospitality and Tourism, 16(2): 130-142. DOI: 10.1080/15022250.2015.111798
  36. Hicks J., Murphy T., Arthur L., Basu P. and Keogh D. (2014). Evaluating Major Sporting Events: Economic Impact versus Cost Benefit – The Case of Bathurst 1000. The International Journal of Sport and Society, 3(4): 209-218.
  37. Industry Commission (1996). State, Territory and local government assistance to industry, vol. 55. Belconnen, ACT.
  38. Kananagh J.M. (1968). Programmatic Benefit-Cost Analysis of Local Youth Recreation Programmes. Los Angeles: Institute of Government and Public Affairs, UCLA.
  39. Kavetsos G. and Szymanski S. (2010). National well-being and international sports events. Journal of Economic Psychology, 31(2): 158-171.
  40. Késenne S. (1999). Kosten-Nutzen-Analyse von Sport-Events. Aachen: Meyer & Meyer Verlag.
  41. Kokoski M.F. and Smith V.K. (1987). A General Equilibrium Analysis of Partial-Equilibrium Welfare Measures: The Case of Climate Change. The American Economic Review, 77(3): 331-341.
  42. Kurscheidt M. (2009). Ökonomische Analyse von Sportgroßveranstaltungen: ein integrierter Evaluierungs- und Management-Ansatz am Beispiel von Fußball-Weltmeisterschaften. Paderborn: Univ.
  43. Leontief W. (1966). Input-output economics. New York: Oxford University Press.
  44. Li S., Blake A. and Thomas R. (2013). Modelling the economic impact of sports events: The case of the Beijing Olympics. Economic Modelling, 30(0): 235-244.
  45. Li S. and Jago L. (2013). Evaluating economic impacts of major sports events. A meta analysis of the key trends. Current Issues in Tourism, 16(6): 591-611.
  46. MacAuley D. (2015). The health legacy of hosting major sporting events. CMAJ, 187(17): 1267.
  47. Maennig W. (1991). “Kosten-Nutzen-Analysen Olympischer Spiele in Deutschland”. List Forum für Wirtschafts- und Finanzpolitik, 17: 336-362.
  48. Maennig W. (1998). Möglichkeiten und Grenzen von Kosten-Nutzen-Analysen im Sport. Sportwissenschaft (Schorndorf), 28(3/4): 311-327.
  49. Massiani J. (2018). Assessing the economic impact of mega events using Computable General Equilibrium models: Promises and compromises. Economic Modelling, 75: 1-9.
  50. Massiani J. (2020a). How Much Will this Event Benefit Our Economy? A Checklist for Economic Impact Assessments with Application to Milan 2015 Expo. Almatourism, 11(21): 43-78.
  51. Massiani J. (2020b). Towards Improved Guidelines for Cost-Benefit Analysis of Sport and Cultural Events. Economic Papers: A journal of applied economics and policy, 39(3): 270-289. DOI: 10.1111/1759-3441.1227
  52. Massiani J. (2020c). A critical view on mega-events impacts studies. Milan 2015 and beyond. In: Cuffy V.V., Bakas F. and Coetzee W.J., eds., Event Tourism: Critical insights and Contemporary Perspectives. Routledge: London, pp. 143-162.
  53. Massiani J. (2021). Effetti di sostituzione o impatto economico dei visitatori dei grandi eventi, da Milano 2015 a Cortina 2026. Turistica, XXIX(3).
  54. Massiani J. e Granaglia R. (2019). Le prime linee guide pubblicate sull’Analisi Costi Benefici degli eventi sportivi. Rivista di Diritto e Economia dello Sport, 3: 105-127.
  55. Masur J.S. and Posner E.A. (2012). Regulation, unemployment, and cost-benefit analysis. Virginia Law Review, 98(3): 579-634.
  56. Matheson V. (2006). Mega-Events: The effect of the world’s biggest sporting events on local, regional, and national economies. College of the Holy Cross, Department of Economics. -- Consulté à l’adresse: https://ideas.repec.org/p/hcx/wpaper/0610.html
  57. McHugh D. (2006). A Cost-Benefit Analysis of an Olympic Games. Kingston, Ontario, Canada: Queen’s Economics Department.
  58. Ministery of Business Innovation and Employment (2013). Major events investment benefits; Meta-Evaluation Report. Economic Evaluation Outcomes. Consulté à l’adresse: -- www.beehive.govt.nz/release/major-events-investment-benefits-nz-%E2%80%93-report
  59. Mitra-Kahn B.H. (2008). WP 2008-1 Debunking the Myths of Computable General Equilibrium Models (SCEPA working paper series No. 2008‑1). Schwartz Center for Economic Policy Analysis (SCEPA), The New School. Consulté à l’adresse: -- http://EconPapers.repec.org/RePEc:epa:cepawp:2008-1
  60. Mohring H. (1993). Maximizing, measuring, and not double counting transportation-improvement benefits: A primer on closed- and open-economy cost-benefit analysis. Transportation Research Part B: Methodological, 27(6): 413-424. DOI: 10.1016/0191-2615(93)90014-
  61. Naves P. (1988). L’impact économique de l’organisation des Jeux Olympiques d’hiver de 1992. Revue Juridique et Economique du Sport, 4: 5-16.
  62. NSW Treasury (1997). The Economic Impact of the Sydney Olympic Games. A Collaborative Study by NSW Treasury and The Centre for Regional Economic Analysis, University of Tasmania No. TRP 97-10.
  63. NSW Treasury (2014). Application of Cost Benefit Analysis to Major Events: framework paper. Sidney.
  64. Open Economics (2016). Valutazione Economica dei Giochi Olimpici e Paralimpici - Roma 2024. Roma: Comitato Roma.
  65. Preuss H. (2005). The Economic Impact of Visitors at Major Multi-sport Events. European Sport Management Quarterly, 5(3): 281-301. DOI: 10.1080/1618474050019071
  66. Robson E.N., Wijayaratna K.P. and Dixit V.V. (2018). A review of computable general equilibrium models for transport and their applications in appraisal. Transportation Research Part A: Policy and Practice, 116: 31-53.
  67. Rose A. (1995). Input-output economics and computable general equilibrium models. Structural Change and Economic Dynamics, 6(3): 295-304. DOI: 10.1016/0954-349X(95)00018-
  68. Rosen H. and Gayer T. (2013). Public Finance. Boston: McGrawHill.
  69. Sanz R.P. y Insúa J.A.S. (2003). El Impacto del Deporte en la Economía: Problemas de Medición. Revista Asturiana de Economia, 26(1). -- Consulté à l’adresse: http://cev.org.br/biblioteca/el-impacto-del-deporte-en-la-economia-problemas-medicion
  70. Schaffer W.A. and Davidson L.S. (1975). The economic impact of professional football on Atlanta. In: Ladany S.P., ed., Management science applications to leisure-time operations Amsterdam: North Holland, 276‑296.
  71. Schenk S., Gerdes E., Pohl I. and Koning R. (2018). Handreiking MKBA sportevenementen (Een handreiking voor het ex-ante en ex-post in kaart brengen van de maatschappelijke kosten en baten van sportevenementen). Den Haag: Nederlandse SportRaad.
  72. Shoven J.B. and Whalley J. (1984). Applied General Equilibrium Models of Taxation and International Trade: An Introduction and Survey. Journal of Economic Literature, 22(3): 1007-1051.
  73. Taks M., Késenne S., Chalip L., Green B.C. and Martyn S. (2011). Economic impact analysis versus cost benefit analysis: The case of a medium-sized sport event. International Journal of Sport Finance, 6(3): 187-203.
  74. Tasmania Auditor General Office (2016). Event funding, Report of the Auditor-General, n. 4 of 2016-17).
  75. Thöni E. (1984). Sport und Ökonomie: Kosten-Nutzen-Analyse als Entscheidungshilfe für Sport (Groß-) Veranstaltungen. Schimmelpfeng-Review, 33: 89-92.
  76. van der Linden J. and Baudewyns D. (2010). Analysis of the macroeconomic effects of organising the 2018 FIFA World Cup in Belgium. Working Paper 08-10. Brussels: Federal Planning Bureau.
  77. Wyk L. van, Saayman M. and Rossouw R. (2013). Economic impact of the Klein Karoo National Arts Festival: investigating the application of different models. Journal of Economic and Financial Sciences, 6(1): 129-152.
  78. Wyk L. van, Saayman M., Rossouw R. and Saayman A. (2015). Regional economic impacts of events: A comparison of methods. South African Journal of Economic and Management Sciences, 18(2): 155-176.
  79. Whalley J. (1975). How Reliable is Partial Equilibrium Analysis? The Review of Economics and Statistics, 57(3): 299-310.
  80. Zimbalist A. (2015). Circus Maximus: The Economic Gamble Behind Hosting the Olympics and the World Cup. Washington D.C: Brookings: Institution Press.
  81. Zonzilos N., Danchev S., Vettas N., Demian E., Papadakis E. and Paratsiokas N. (2015). The impact of the 2004 Olympic Games on the Greek economy. Athinai: Ι∆ρυµα οικονοµικων & βιοµηχανικων ερευνων, Foundation for Economic and Industrial Research.

  • Computable General Equilibrium assessment of mega-events: Issues and possible solutions Jérôme MASSIANI, in Journal of Policy Modeling /2022 pp.920
    DOI: 10.1016/j.jpolmod.2022.09.015

Jérôme Massiani, Comment évaluer les bénéfices économiques d’un grand évènement? Pour un discours de la méthode in "ARCHIVIO DI STUDI URBANI E REGIONALI" 130/2021, pp 140-162, DOI: 10.3280/ASUR2021-130008