EPP – Articles of Interest

  • James Surowiecki’s discussion of Bolivia in the New Yorker a few weeks ago makes some useful points on hyperinflation, the Washington Consensus and modest reformers.
  • Wondering what impact the Commonwealth Games will have on Melbourne’s economy? If this review of the US literature is anything to go by, the benefit is likely to be small. A 2002 study on the economic impact of the Sydney Olympics suggested a modest positive effect (+0.3% over 12 years), but there are a few too many assumptions in it to make me feel comfortable.
  • I haven’t yet read Clive Hamilton’s new anti-growth Quarterly Essay, but my friends John Quiggin and Andrew Norton aren’t fans.
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3 Responses to EPP – Articles of Interest

  1. Sinclair Davidson says:

    See also:
    Berman, G., R. Brooks and S. Davidson. “The Sydney Olympic games announcement and Australian stock market reaction”. Applied Economics Letters. 2000 7: 781-784

  2. Andrew Leigh says:

    Sinc, do you have an electronic version I can post? Or at least an abstract?

  3. Andrew Leigh says:

    Sinclair has emailed me his abstract:

    On September 23, 1993 the International Olympic Committee announced that Sydney would host the 2000 Olympic Games. Given the keen competition between rival cities bidding for the Olympics it could be argued that the winning city anticipates economic benefits to accrue from hosting the games. To the extent that this is valid, we may find some stock market reaction to the Olympic announcement. Testing the hypothesis for Australia we reach the following findings. First we find no overall impact on the stock market. Second we find that only a limited number of industries’ portfolios show a significant positive impact to the Olympic games announcement. Specifically the industry portfolios are: building materials, developers and contracts, engineering and miscellaneous services. This is consistent with the economic boost for the Olympics being in infrastructure and development and thus in the general building and construction sector. Third the results clearly demonstrate that for the industries where there was a significant positive stock market reaction to the Olympic Games announcement, that significant positive stock market reaction is confined to stocks based in the state which will host the games, New South Wales.

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