| Abstract: |
Hosting a mega-event is a costly activity of short duration. Still, cities
frequently compete to become host of all types of events. This paper examines
the effect of staging the largest and most important sporting event in the
world, the Summer Olympic Games, on the host city. Applying a
difference-in-differences methodology, we analyze the rates of population
growth of Olympic cities, candidate cities and other large cities in host and
candidate countries over the period from 1860 to 2010. We find that, following
the Games, host cities do not experience a measurable increase in population
growth relative to cities in the control group. On the contrary, to the extent
that any effect of hosting the Games is identifiable, our results indicate
that being awarded the Summer Olympics has a negative impact on cities. |