Allison Craddock and Adam Hollier UP 504 – Quantitative Methods March 18, 2008 Chasing the Gold Standard: Analyzing the economic development impact of Olympic Candidate Cities. Overview Our research endeavors to quantify the potential impact to a MSA based on hosting the Olympic Games. Our study will compare three US regions: Atlanta, Georgia, host of the 1996 Summer Olympic Games; Chicago, Illinois, candidate city for the 2012 Olympic Games; and Detroit, Michigan, a city which would greatly benefit from economic development. This topic is increasingly important as place making economic development strategies persist. Our ultimate research goal is to determine quantitatively if hosting the Olympic Games would be a viable method of developing Detroit’s economy and encouraging revitalization within the city. Research Question o Does hosting the Olympic Games cause economic growth in U.S. host cities? Hypotheses o Hosting the Olympic games will create economic growth. o Hosting the Olympics revitalizes the host city. Unit of Analysis o MSA is unit Data Required and Sources o Data required ♣ Bureau of Labor Statistics NAICS Employment data for Atlanta Georgia and Chicago Ill. and Detroit, Mich., 1992, 1997, 2002 data o Sources ♣ Economic Census data ♣ ArcGIS data ♣ Bureau of Labor Statistics ♣ U.S. Census Methodology 1. Collect data and convert NAICS 1992 data to a compatible format to 2002 2. Perform Shift Share analysis 3. Run an Economic Base Analysis using the Minimum requirements method 4. Project the impact of hosting the games for Detroit and Chicago using the shift share method of projection 5. Run a regression analysis of basic employment to determine which industries are predictive of hosting the Olympics. 6. Write up data and discuss the implications of growth in Olympic industries on Chicago and Detroit. Anticipated Results o The hypotheis will likely be proven true and hosting the Olympic Games will cause economic growth in the form of an increase in jobs. Further we expect the greatest impact on Detroit’s economy.
Proposal