FiT Publishing

This paper empirically illustrates the difference between a standard economic impact analysis (EIA) and a cost-benefit analysis (CBA). The EIA was conducted using an existing (input-output) I-O model (STEAM). The benefit side of the CBA included non-local visitor spending, the revenue of the local organizing committee (LOC), the consumer surplus, and public good value of the sport event for the local residents. The cost side of the CBA was estimated based on the opportunity costs related to the construction of the stadium (including labor costs and the cost of borrowing), imports, and...Read more

An economic impact assessment alone cannot justify public support for hosting mega-sporting events. A cost-benefit analysis in order to measure the net social utility for the population is also relevant. Nevertheless, if there is always a high demand of economic impact studies by public authorities before hosting an event, the cost-benefit studies are never made, so there is a high risk to make decisions that are not rational. In this paper, to take into account simultaneously the economic impact and the social utility of mega-sporting events, we propose a legitimacy test we illustrate...Read more