The Economics of Hosting Mega Sporting Events

The lead up to Brazil 2014 is marred by street protests, corruption allegations, and misallocation of resources. Host cities take on huge debt to finance stadium and infrastructure construction, but will they ever see a return on this investment? As the Commonwealth Games in Glasgow move into full swing, Professor Victor A. Matheson, who researches the economic impact of sports, explains what criteria are taken into considerations by organizing committees when preparing a bid for a high profile sporting event.