Almost all econometric analyses of mega sporting events show nonsignificant results, i.e., they fail to reject the null hypothesis at the usual α levels of significance. Our contribution takes up the recent critique against the usual handling of the term of significance and qualifies the common interpretation that from a statistical point of view, the effects of mega sporting events are not significant. For this purpose, we use employment data from the World Cup 2006 in Germany. We determine empirical power functions of the relevant t-tests by means of a simulation study with...Read more
