Are sports events necessarily black holes for public finances? The case of Milan-Cortina 2026

20 Pages Posted: 10 May 2021

See all articles by Jan van der Borg

Jan van der Borg

Ca Foscari University of Venice

Mario Volpe

Ca Foscari University of Venice

Nicola Camatti

Ca' Foscari University of Venice - Department of Economics; Ca' Foscari University of Venice - Department of Economics

Andrea Albarea

Ca Foscari University of Venice, Department of Economics, Students

Date Written: May 1, 2021

Abstract

The objective of this paper is to explore whether huge public investments in international sports events necessarily turn out to be burdens for regional economies or not. This will be illustrated by estimating the economic and, in particular, the fiscal impact of the forthcoming Milan-Cortina 2026 Olympics on the economies and the public finances of the Veneto Region and on those of the Autonomous Provinces of Trento and Bolzano. To this end, we use an Input-Output (IO) analysis that we suitably modelled in order to measure also the specific impacts of the Olympic event on the national, regional and local tax systems. The paper will argue that in the case of international sports events, when prepared and managed carefully and also when their legacy is rooted in the regional economic systems from the start, the net effects of these events on the economy and on the public finances might be positive. It also tries to provide regional administrations, specifically referring again to the regional governments of the Veneto and Trentino-Alto Adige in particular, with a number of essential elements for a correct assessment of the socio-economic impact of this event and some suggestions on how the above-mentioned policies before, during and after the event, can help regional administrations to safeguard the collective interest through the hosting of international sports events.

Keywords: Big Event, Milan-Cortina 2026 Olympics, IO analysis, economic impact, regional development, public finance

JEL Classification: L83, O18, R58

Suggested Citation

van der Borg, Jan and Volpe, Mario and Camatti, Nicola and Albarea, Andrea, Are sports events necessarily black holes for public finances? The case of Milan-Cortina 2026 (May 1, 2021). Available at SSRN: https://ssrn.com/abstract=3841943 or http://dx.doi.org/10.2139/ssrn.3841943

Jan Van der Borg

Ca Foscari University of Venice ( email )

Dorsoduro 3246
Venice, Veneto 30123
Italy

Mario Volpe

Ca Foscari University of Venice ( email )

Dorsoduro 3246
Venice, Veneto 30123
Italy

Nicola Camatti (Contact Author)

Ca' Foscari University of Venice - Department of Economics ( email )

Dorsoduro 3246
Venice, Veneto 30123
Italy

Ca' Foscari University of Venice - Department of Economics ( email )

Cannaregio 873 CAP 30121 Venezia
Dipartimento di Economia
VENEZIA, 30121
Italy

Andrea Albarea

Ca Foscari University of Venice, Department of Economics, Students ( email )

Venice
Italy

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