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Economics Working Papers, 2018

Copies may be downloaded on pdf, or hard copies may be requested from Joshua Hall, Working Paper Coordinator.


Author(s): Nicholas Le 
Title:    "Evaluating Crime as a Negative Externality of Hosting Mega-Events: Econometric Analysis of the 2012 London Summer Olympics"   
Abstract: Analysis of the benefits and the drawbacks of hosting large-scale sporting events like the Olympics or World Cup frequently ignore the effects of crime due to its relatively small economic impact in comparison to employment and consumption effects. Literature has frequently tied sporting events and tourism to crime, in addition to observing proximity effects on crime during sporting events. This research seeks to confirm both by implementing a difference-in-difference regression that can show whether crime increased during the Olympics, in particular in London boroughs which hosted venues for the Games. Ultimately, the research concludes that crime in London as a whole does increase although it is unable to find statistically significant evidence that crime increased in host boroughs at a magnitude larger than the general increase in crime in the city. Likely reasons we have been unsuccessful in pinpointing the location effects include data limitations (daily data would be superior to monthly data due to the dates during which the event was hosted) and the relatively small geographical size of each host borough, as well as their proximity to one another.