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Evaluation of an informal rule for the allocation of sports capital funding

Author

Listed:
  • John Considine

    (University College Cork)

  • Justin Doran

    (University College Cork)

Abstract

Significant empirical research has highlighted the existence of pork barrel politics. This is where public expenditure is targeted at particular regions based on the logic of collective action: political entrepreneurs maximize their chances of re-election by searching for and implementing programs or projects characterized by ‘concentrated benefits’ for key constituents and broadly dispersed costs. Using data on capital grants to Irish sports teams for 1998–2015, this paper analyzes the extent to which an informal rule can correct this bias. The case of allocating sports capital grants is particularly interesting since academic research, media commentary, and ministerial statements all seem to confirm the existence of political bias with such allocations in Ireland. Specifically, the geographical distribution of the grants are clearly linked to the Minister for Sport: that minister’s constituent county receives significantly higher per capita grant allocation than any other county. The grants were suspended in 2009 because of a fiscal crisis arising from the recession. When the grants were restored in 2012, a new informal rule for allocations was introduced. That informal rule was introduced to reduce the extent of pork barrel politics by ensuring that no county received less than 75 % or more than 150 % of the national average of the per capita grant allocations. The present study evaluated the effectiveness of that informal rule in reducing pork barrel politics in Irish sports capital grant allocations.

Suggested Citation

  • John Considine & Justin Doran, 2016. "Evaluation of an informal rule for the allocation of sports capital funding," Public Choice, Springer, vol. 168(1), pages 43-54, July.
  • Handle: RePEc:kap:pubcho:v:168:y:2016:i:1:d:10.1007_s11127-016-0348-1
    DOI: 10.1007/s11127-016-0348-1
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    References listed on IDEAS

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    1. Joshua Hall & Amanda Ross & Christopher Yencha, 2015. "The political economy of the Essential Air Service program," Public Choice, Springer, vol. 165(1), pages 147-164, October.
    2. John J. Siegfried & Andrew Zimbalist, 2000. "The Economics of Sports Facilities and Their Communities," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 95-114, Summer.
    3. Andrew Leigh, 2008. "Bringing home the bacon: an empirical analysis of the extent and effects of pork-barreling in Australian politics," Public Choice, Springer, vol. 137(1), pages 279-299, October.
    4. Andrew Young & Russell Sobel, 2013. "Recovery and Reinvestment Act spending at the state level: Keynesian stimulus or distributive politics?," Public Choice, Springer, vol. 155(3), pages 449-468, June.
    5. John Considine & Frank Crowley & Sinead Foley & Marie O’Connor, 2008. "Irish National Lottery Sports Capital Grant Allocations, 1999–2007: Natural Experiments On Political Influence," Economic Affairs, Wiley Blackwell, vol. 28(3), pages 38-44, September.
    6. Dennis Coates, 2007. "Stadiums And Arenas: Economic Development Or Economic Redistribution?," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 565-577, October.
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    Cited by:

    1. O'Connor, Sean, 2016. "Distance and Decision Makers – The heterogeneity in Irish Sports Capital Funding," MPRA Paper 73897, University Library of Munich, Germany.

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    More about this item

    Keywords

    Pork barrel; Sport expenditure; Fiscal rules; Congressional dominance model;
    All these keywords.

    JEL classification:

    • Z28 - Other Special Topics - - Sports Economics - - - Policy
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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