The Olympic Bid Cycle as a form of irrational investing: An application of Minskyian theory

Cogent Social Sciences

Elesa Zehndorfer¹  Chris Mackintosh² 

[1] British Mensa;Manchester Metropolitan University;

关键词: minsky;    olympic games;    irrational investing;    behavioural finance;    ponzi financing, hedge financing, speculative financing, minsky’s credit cycle;    minsky’s financial instability hypothesis;    2008 financial crisis;   

DOI  :  10.1080/23311886.2017.1281466

来源: DOAJ

【 摘 要 】

Host city bidding for the Olympic Games appears to constitute a form of pro-cyclical irrational investing that leads to multi-billion dollar economic and financial shortfalls and budget over-runs with 100% consistency. The utilisation of Minsky’s Financial Instability Hypothesis (FIH) and Credit Cycle to the Olympic Bid Cycle sheds valuable light on the irrationality of these practices, highlighting a move from stable (hedge) to unstable (speculative) and unsustainable, precarious (ponzi) financing over the life-cycle of an Olympic bid. Application of Minskyian theory to the Olympic Bid Cycle carries important insights for practitioners and policy-makers, extends the analysis of Olympic-Games studies to the post-Classical economics realm, and addresses a wider theoretical call for the utilisation of Minskyian theory outside of a financial markets context. The article concludes with recommendations for further research.

【 授权许可】

Unknown