Computable General Equilibrium analysis of mega events: where are we standing?

Mega events are perceived as an opportunity to foster regional development. Yet many impact assessment methods routinely used to inform the policy maker ex hibit strong limitations. The most influential method, IO appears based on discussible implicit assumptions like the assumed additionality of the financial flows related to the event, or the lack of constraints on resources. In this context, CGE methods experience a growing popularity in the evaluation of mega event impacts. In this paper, we present a systematic and critical review of more than 30 papers in the field. We examine the main conceptual issues of these papers. Our analysis suggests an excessive reliance of practitioners on habits deeply rooted in the CGE community and that more consideration of the specific features of mega events is necessary, if one wants CGE results to provide useful guidance to policy making in this area.