• AEA in the news
  • June 13, 2016

Brazil's woes reach Olympian proportions

A view of Copacabana Beach in Rio de Janeiro, Brazil.


CBS Moneywatch cited a piece from the latest issue of the Journal of Economic Perspectives in an article about cost overruns and other problems facing the upcoming Olympic Games in Rio de Janeiro. In Going for the Gold: the Economics of the Olympics, authors Robert Baade and Victor Matheson tally the economic costs and benefits of hosting the Olympics, including demands on transportation, housing, and infrastructure but also increased trade, tourism, and civic pride. They find that costs almost always outweigh benefits (especially for host cities in developing countries) and yet there is still strong interest in hosting future Olympics.