Quantifying the intangible impact of the Olympics using subjective well-being data

• Published in: Journal of public economics Vol. 177; p. 104043
• Main Authors: Dolan, Paul, Kavetsos, Georgios, Krekel, Christian, Mavridis, Dimitris, Metcalfe, Robert, Senik, Claudia, Szymanski, Stefan, Ziebarth, Nicolas R.
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.09.2019; Elsevier
• Subjects: Economics and Finance; Happiness; Humanities and Social Sciences; Intangible effects; Life satisfaction; Olympic Games; Quasi-natural experiment; Sport events; Subjective well-being; Subjective well-being; Z28; Happiness; I31; L83; I30; Quasi-natural experiment; Sport events; Intangible effects; I38; Z20; Olympic Games; Life satisfaction
• ISSN: 0047-2727; 1879-2316
• DOI: 10.1016/j.jpubeco.2019.07.002

Hosting the Olympic Games costs billions of taxpayer dollars. Following a quasi-experimental setting, this paper assesses the intangible impact of the London 2012 Olympics, using a novel panel of 26,000 residents in London, Paris, and Berlin during the summers of 2011, 2012, and 2013. We show that hosting the Olympics increases subjective well-being of the host city's residents during the event, particularly around the times of the opening and closing ceremonies. However, we do not find much evidence for legacy effects. Estimating residents' implicit willingness-to-pay for the event, we do not find that it was worth it for London alone, but a modest well-being impact on the rest of the country would make hosting worth the costs. •We assess the intangible benefits of the London 2012 Olympic Games.•We follow a panel of 26,000 residents in London, Paris, and Berlin during the summers of 2011, 2012, and 2013.•Hosting the Olympic Games in 2012 has provoked a rise in the life satisfaction of Londonders, particularly around the opening and closing ceremonies.•A case can be made that hosting was worth the costs•We do not find strong evidence for legacy effects.