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Abstract

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Funding Transport Systems
Type: Book
ISBN: 978-0-08-043071-3

Article
Publication date: 26 June 2018

Geoffrey Propheter

The purpose of this paper is to evaluate a number of promises typically made by owners of professional sports franchises in the USA that are also typically ignored or…

Abstract

Purpose

The purpose of this paper is to evaluate a number of promises typically made by owners of professional sports franchises in the USA that are also typically ignored or underevaluated by public bureaus and their elected principals using the Barclays Center in Brooklyn, New York as a case study. Ex post subsidy outcomes are evaluated against ex ante subsidy promises in order to draw lessons that can inform and improve subsidy debates elsewhere.

Design/methodology/approach

The case study adopts a pre-post strategy drawing on data from multiple sources over a period of up to ten years in order to triangulate the narrative and build credibility. The franchise owner’s ex ante promises and financial projections were obtained from various media including newspaper, video and interviews between December 2003, when the arena was publicly announced, and September 2012, when the arena opened. Data on ex post outputs were obtained from financial documents and government records covering periods from September 2011 through June 2016.

Findings

The franchise owner is found to have exaggerated the arena’s financial condition, under-delivered on its employment promises, and exaggerated the scope and timeliness of ancillary real estate development. Only promises of event frequency and attendance levels, measures of the public’s demand for the facility, have been met during the first three years.

Research limitations/implications

Because the evaluation is a case study, causal conclusions cannot be drawn and some aspects of the Barclays Center context may not be applicable in other jurisdictions or subsidy debates. In addition, the case study does not evaluate an exhaustive list of the promises franchise owners make.

Practical implications

Franchise owners have a financial incentive to overpromise public benefits, since subsidy levels are tied to what the public is perceived to receive in return. This case study demonstrates that the public sector should not take owners’ promises and projections of public benefits at face value. Moreover, the case study reveals that the public sector should put more effort into ensuring ex post policy and data transparency in order to facilitate benefit-cost analyses of such subsidies.

Originality/value

The data required to evaluate promises, other than economic development ones, made by franchise owners are not systematically collected across state and local governments in the USA, making large-n studies impossible. Case studies are underutilized approaches in this area of public affairs, and this paper illustrates their usefulness. By focusing on a single facility, an evaluation of the franchise owner’s less acknowledged and arguably more important promises about the facility and its local impact is possible.

Details

International Journal of Public Sector Management, vol. 32 no. 1
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 27 August 2021

Dan Wang, Xueqing Wang, Lu Wang, Henry Liu, Michael Sing and Bingsheng Liu

This study aims to develop a Stackelberg Game Model for seeking the optimal subsidy plans with varying levels of government financial capability (GFC). Furthermore, the…

Abstract

Purpose

This study aims to develop a Stackelberg Game Model for seeking the optimal subsidy plans with varying levels of government financial capability (GFC). Furthermore, the scenario-based analysis is conducted and will enable governments to identify a comprehensive subsidy plan as follows: improve project performance and optimise social welfare.

Design/methodology/approach

A Stackelberg Game Model is developed to optimise the effectiveness of subsidies on the performance of public-private partnerships (PPPs).

Findings

According to the scenarios that are generated from the model, governments that are confronting with limited public budgets could reduce the intensity of performance incentives and increase the participation-oriented subsidy. Whilst a participation-oriented subsidy can stimulate private organisations’ willingness to participate in infrastructure PPPs, a performance-oriented subsidy is capable of facilitating the projects’ performances. Intuitively, the performance-oriented subsidy enables the private entities of PPPs to improve their efforts on the projects to realise higher profits. However, the participation-oriented subsidy is unable to affect the level of their effort spent on the projects. To satisfy both parties’ expectations in a PPP, the performance-oriented subsidy needs to be prioritised for a purpose of enabling higher quality outputs.

Practical implications

The game model developed in this study contributes to the literature by offering new insight into the underlying mechanism of governments and private entities, in terms of their decision-making for subsidy planning and contributions (i.e. resource allocation and spending) during the life-cycle of PPPs. This research enriches the government subsidy model by revealing the effects of the GFC and clarifies the impacts of two different schemes of subsidy on the performance of PPPs.

Originality/value

The government has been conventionally viewed as being omnipotent to provide PPPs with a wide range of subsidies. However, the subsidies are not unlimited, due to GFC. In addressing this void, this study has modelled the impacts of government subsidy plans with a consideration of GFC-related constraints. The combined effects of the participation- and performance-oriented subsidies on the project performance of PPPs have been examined.

Details

Journal of Engineering, Design and Technology , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 11 March 2020

KonShik Kim

The purpose of this study is to determine the extent to which R&D subsidy can affect the innovation process of manufacturing venture firms by examining the output…

Abstract

Purpose

The purpose of this study is to determine the extent to which R&D subsidy can affect the innovation process of manufacturing venture firms by examining the output additionality measured as both proximal indicators of innovation and distal indicators of growth. Further, the differences in output additionality between the clusters in the subcontracting regime were examined to investigate whether the effect of R&D subsidy can vary depending on subcontracting practices and structure among large enterprises and venture firms.

Design/methodology/approach

This study uses survey data of the Korea Venture Business Association conducted in 2012, 2013, 2014, 2015, and 2016 respectively, which selects a random sample from venture firms by stratified random sampling method based on the industry sector, size and location for each survey year. This study analyzed the data using an endogenous treatment effects model to estimate the average treatment effect of R&D subsidy, yielding more accurate estimates than a traditional treatment effects model by controlling the unobserved endogenous components.

Findings

This research found that R&D subsidy may not facilitate the process of transformation of innovation into financial growth even though R&D subsidy can facilitate the innovation process and contribute to producing new and improved products. This research also reveals that the relationship between R&D subsidy and innovation performance for firms heavily dependent on subcontracting is generally much weaker than those for independent subcontractors. Further, the present study exhibits that public R&D subsidy for independently subcontracting venture firms is more effective for the growth in both employment and sales than those for subcontracting with large enterprises or other subcontractors.

Research limitations/implications

R&D subsidy for venture firms does not relieve the burden of liability of newness and smallness of venture firms, especially the disadvantage in market penetration and competition. In addition, venture firms subcontracting with large enterprises or other prime subcontractors tend to achieve incremental innovation with the help of the technology and competence of large companies and run stable businesses through a predetermined market.

Practical implications

R&D subsidy for venture firms does not relieve the burden of liability of newness and smallness of venture firms, especially the disadvantage in market penetration and competition. Further policy measures should be implemented so as to identify and eliminate barriers to market acceptance for new products of venture firms.

Originality/value

This research verifies that the effect of R&D subsidy may harmful to the sales growth of venture firms and the output additionality differs with the degree of dependency on subcontracting practices and structure.

Details

European Journal of Innovation Management, vol. 24 no. 2
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 7 November 2016

Tiffany Schweickart, Jordan Neil, Ji Young Kim and Spiro Kiousis

The purpose of this paper is to explore the linkages between public relations efforts and policymaking activity during a non-election setting.

Abstract

Purpose

The purpose of this paper is to explore the linkages between public relations efforts and policymaking activity during a non-election setting.

Design/methodology/approach

Using a time-lag design, this study used content analysis to examine public relations materials and policymaking activity during the first six months of US President Barack Obama’s second term. The public relations data were collected from the official White House website and social media. The policymaking data were collected from congressional calendars of business.

Findings

The data revealed varying degrees of support across the three levels of agenda-building for issues, attributes, and issue/attribute co-occurrence. Contrary to the expected relationship that public relations drives policymaking activity, the data suggest that policymaking activity was a stronger predictor of public relations material.

Research limitations/implications

This study provides modest support for time-lag agenda-building effects across three levels. However, future experimental research is needed to truly assess causal relationships. Future research should also explore alternative sources of data for policymaking activity.

Practical implications

This study demonstrates that the efficacy of information subsidy types is not uniform and should be chosen strategically. Traditional subsidy types were most effective for driving issues, while digital subsidy types provided more useful outlets for driving issue attributes.

Originality/value

This study contributes to political public relations scholarship by exploring the temporal relationships between public relations efforts and policymaking activity in a non-election setting. The time-lag design serves as an exploratory inquiry into the agenda-building process.

Details

Journal of Communication Management, vol. 20 no. 4
Type: Research Article
ISSN: 1363-254X

Keywords

Article
Publication date: 17 July 2017

Pierre André Buigues

The purpose of this paper is to analyse the economic and political conditions that could explain why the governments in developed economies have intervened in the…

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Abstract

Purpose

The purpose of this paper is to analyse the economic and political conditions that could explain why the governments in developed economies have intervened in the automobile industry. The author identifies the main reasons and the shortcomings of these public interventions.

Design/methodology/approach

The paper presents different forms of public intervention in the automobile industry of various countries over the past few decades: infant industry, research and development (R&D), global climate change and global systemic crisis.

Findings

The automobile sector is viewed by governments as a key sector and is subsidised for different reasons at different periods. The paper shows that governments give different reasons for public intervention in the automobile industry (infant industry, global climate change, R&D externalities, the global financial crisis, etc.). Whatever the theory, in practice, public interventions have a strong impact on the industry and its evolution.

Practical implications

The paper highlights the importance for car manufacturers of monitoring the political initiatives of public authorities, which can affect the technological evolution of the automobile industry.

Social implications

For households, the purchase of a car is quite important, and the political orientation of public subsidies in favour of one option over another, such as electric vehicles or an autonomous car, affects their choice.

Originality/value

The paper examines an issue which has not previously been addressed by journals, yet which is crucial, i.e. the impact of government decisions on the evolution of an industry. The approach can also be applied to other sectors.

Details

Journal of Business Strategy, vol. 38 no. 4
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 17 May 2013

Gary C. Fethke and Andrew J. Policano

Tightened government budgets are forcing public universities to confront a new economic reality as the traditional low tuition‐high subsidy model of public higher…

846

Abstract

Purpose

Tightened government budgets are forcing public universities to confront a new economic reality as the traditional low tuition‐high subsidy model of public higher education becomes increasingly unsustainable. The shift toward reliance on tuition relative to taxpayer support reflects adjustments in consumer preferences, increased mobility, enhanced competition from non‐traditional providers, and reallocated government budgets. The outcome is clear: taxpayer support for higher education is decreasing, and is decreasing sharply and permanently when measured on a per student basis. The purpose of this paper is to develop a framework for university leaders that can provide the foundation for the transformation that needs to take place as universities face a permanent decline in public support. The primary goal is to point out differences between private business enterprises and public universities and then to suggest that many of the characteristics that define private sector excellence are applicable, often with modest modifications, to higher education.

Design/methodology/approach

The paper discusses and contrasts methodologies from the business and academic environments and suggest a hybrid framework for universities that captures appropriate business principles and provides beneficial outcomes while supporting and promoting academic excellence. It examines public university business schools as an example that provides initiatives that can be applied in many other areas of the university.

Findings

It is argued that many traditional practices in public higher education are incompatible with a changing environment that features permanent reductions in taxpayer support and greater reliance on tuition revenue from students who face attractive alternatives. There is also a changing demographic profile of applicants, many of whom require expensive remedial programs. The main result of the analysis is that a hybrid model of business and academic practices can provide a meaningful path for public universities to sustain excellence in a period of declining subsidy.Social implications – The framework developed in this paper includes the adoption of a distinctive, focused mission with a transparent budgetary system combined with the setting of differential tuition across areas based on willingness to pay and cost factors. Implementation of this framework can lead to an increase in social welfare by increasing efficiency, lowering costs, and effectively allocating resources across the university.

Originality/value

This paper's intent is to reach out to administrators and leaders in public higher education with an appeal to recognize that the new funding environment requires new ways of thinking about developing and implementing strategy. There is much to gain by becoming externally focused and accountable to those who are willing to pay for teaching and research, and also to recognize that vast differences in costs requires more attention by asking the fundamental questions: What products and services define our excellence and what should we not provide?

Details

Journal of Management Development, vol. 32 no. 5
Type: Research Article
ISSN: 0262-1711

Keywords

Article
Publication date: 14 September 2012

Luis Cruz, Eduardo Barata and João‐Pedro Ferreira

Services provided by urban public road passenger transport companies in Portugal are associated with widely differing economic and financial outcomes. The objective of…

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Abstract

Purpose

Services provided by urban public road passenger transport companies in Portugal are associated with widely differing economic and financial outcomes. The objective of this paper is to characterize these differences and discuss the potential contribution offered by the funding model implemented (including how the services provided are being subsidized).

Design/methodology/approach

The data available in the management and financial reports published by the six existing Portuguese corporations whose main object is to provide a public road transport service were used to establish a set of performance indicators. The paper takes into account three dimensions: resource‐efficiency, service‐effectiveness and resource effectiveness.

Findings

The comparative analysis implemented contributes crucially to an improved understanding of the current idiosyncrasies of urban public road transportation systems in Portugal, with a special emphasis on the productivity and performance results of different public management approaches.

Originality/value

The originality of this paper arises from the case studies presented to support the debate on the influence of local vs central public funding approaches on Portugal's urban public road transport companies’ performance.

Details

International Journal of Productivity and Performance Management, vol. 61 no. 7
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 7 April 2015

Jiuchang Wei and Yang Liu

– This paper aims to examine the effect of government support on the innovation performance of firms in the Chinese context.

2041

Abstract

Purpose

This paper aims to examine the effect of government support on the innovation performance of firms in the Chinese context.

Design/methodology/approach

We divided government support into vertical support and horizontal support, and adopted an empirical research approach in this study. We collected the data of 343 enterprises in China that had been identified as innovative enterprises, including their characteristic data, government support data and patent data. Negative binomial regression was used to quantitatively examine the relationship between government support and the innovation performance of firms.

Findings

Both vertical support in the form of direct research and development (R&D) subsidies and horizontal support in the form of regional innovation policy positively influence the innovation performance of firms. In addition, direct R&D subsidies are more likely to experience the enhanced benefits of carrying out tax credit policy on the innovation performance of firms.

Originality/value

This study contributed to the innovation literature by distinguishing two types of government support, namely, vertical support and horizontal support, and assessing the effects of government support on firm innovation in the Chinese context.

Details

Chinese Management Studies, vol. 9 no. 1
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 28 September 2010

François Jeanjean

It is widely accepted that next‐generation infrastructures will improve economic growth and employment. However, the cost of such a roll‐out is high and profitability is

Abstract

Purpose

It is widely accepted that next‐generation infrastructures will improve economic growth and employment. However, the cost of such a roll‐out is high and profitability is uncertain. Therefore operators hesitate to invest massively. In such a context, public intervention could help rollout. Several forms of intervention are possible. This paper aims to study, more specifically, subsidy strategies: subsidising demand by a contribution to each household's subscription fee for a pre‐determined time (a refund, a tax cut) or subsidising infrastructure by means of a contribution to operators' infrastructure costs.

Design/methodology/approach

The paper uses a dynamic mathematical model based on industrial organization and numerical examples based on techno‐economic analysis.

Findings

This paper shows that subsidising demand is more efficient, in welfare terms, than infrastructure subsidies as long as the time required for private operators to cover an area, without subsidies, is shorter than the duration of the subsidies required to cover the same area immediately, thanks to the increase in consumers' willingness to pay.

Social implications

This paper can help policy makers to optimise public investments in the next‐generation infrastructure.

Originality/value

This paper highlights the leverage that subsidies can provide to infrastructure roll‐out in a dynamic point of view.

Details

info, vol. 12 no. 6
Type: Research Article
ISSN: 1463-6697

Keywords

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