Economic Effects of Olympic Games

Abstract

The 1992 Olympic Games to be held in Barcelona, appart from being an sport event, will have a great effect on the economy. The aim of this paper is thus to estimate the economy side of the Games. Among the different approaches, we chose the macroeconomic one. This is, we are interested in the effects of the Games on the big numbers of the economy. These economic effects have been analysed in two stages: first, we have computed the amount of the total investment and conpsumtion expenditures directly related to the Games, wich we have called direct impact. It takes place mainly in a local level, but it has also effects on other territorial levels since not the whole demand generated by the Games can be satisfed by the regional supply. In a second stage, these expenditures would cause a further increase in conpsumtion and income, wich will be the indirect impact. Therefore, the economic effects of the Games, the whole impact, will be determined by the total amount of the direct and indirect expenditures.