Question

1. What are the problems with ex ante approaches to the study of public spending on sports?

2. With respect to the World Cup and Olympics, what is the economic impact of these events from ex ante and ex post studies?

Answer 1

1. Ex ante means before the event and ex post means after the event.

Public spending on sports is a part of both expansionary fiscal policy and interventionist based supply side policy in which a skilled human capital will be built through sports and a better infrastructure will make long lasting impact on economy.

Ex ante approach will involve a lot of thinking about money to be spent. This money has an opportunity cost and people will want it to be spent on health and education. as sports many a times in developing countries is ignored. Money allocated before hand will come under criticism.

2. Ex ante studies will assess opportunity cost as discussed in question 1. Along with this, it will also assess potential revenue expected by holding these events. Also from physical assets raised It will also assess long run returns on these investments. Ex post studies will be a detailed analysis of all expected benefits and costs incurred during theses events. Benefit analysis will be long lasting as these will be reaped in the long run also.