Using a sample of two countries with contrasting economies, the United States and Greece, over a period of seventeen years, I investigate the impacts hosting the Olympics have on an economy. Specifically, the purpose of this paper is to look at how public investment impacts a country hosting the Olympics, specifically during a seven-year window surrounding the games, including three years before the games, and three years after. The two main ways for a country to finance or increase public investment is through an increase in tax rate, or by issuing government debt. I hypothesized that public investment will have a larger impact on real GDP per capita, the dependent variable, during the seven-year window surrounding the Olympics, compared to the entire seventeen year window. Results from the OLS regressions run with time-series data suggest that increasing government debt does have a significant impact on real GDP per capita, but not anymore so during the window surrounding the Olympic Games. These results can be explained in a model in which real GDP per capita is a function of tax rates, real gross capital formation per capita, real government debt per capita, unemployment rate, and interest rate.
Reckart, Kenneth J., "The Impact Increasing Public Investment to Fund the Olympics Games has on a Host Country" (2016). Senior Independent Study Theses. Paper 7117.
Bachelor of Arts
Senior Independent Study Thesis
© Copyright 2016 Kenneth J. Reckart