nep-spo New Economics Papers
on Sports and Economics
Issue of 2007‒02‒10
four papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. The Economic Impact on the Dominican Republic of Baseball Player Exports to the USA By Amavilah, Voxi Heinrich
  2. Exit Discrimination in Major League Baseball: 1990-2004 By Peter A. Groothuis; Richard Hill
  3. Does sacking the coach help or hinder the team in the short term? Evidence from Belgian soccer. By A. BALDUCK; M. BUELENS
  4. The Dilemma of Choosing Talent: Michael Jordans are Hard to Find By Peter A. Groothuis; Richard Hill; Timothy Perri

  1. By: Amavilah, Voxi Heinrich
    Abstract: This paper pulls together into one practical model two strands of economic theory to assess the impact of baseball player exports on the aggregate economic performance of the Dominican Republic. On one hand, foreign trade theory predicts a strong correlation between a country’s exports and economic performance measured as per capita income. On the other hand, microeconomic research finds a positive, but statistically insignificant, impact of sports activities on local economies. Analysis finds a strong correlation between baseball player exports and economic performance for the years 1962-2004, suggesting that both the USA and the Dominican Republic benefit from encouraging baseball player trade and repatriation of baseball export earnings.
    Keywords: baseball player exports; sports exports; sports and economic performance; sports export-led growth
    JEL: R58 O40 L83 O54 F43 F14
    Date: 2006–10–22
  2. By: Peter A. Groothuis; Richard Hill
    Abstract: Using a panel study of annual Major League Baseball data (1990-2004) we do not find evidence of exit discrimination against African-American players in Major League Baseball. Our findings are inconsistent with results from a study by Jiobu (1988) using 1971-1985 data which found that race decreased career length, ceteris paribus, for black players but not Hispanics. Our results are consistent with recent findings that failed to find evidence of exit discrimination in the NBA using data from the 1990s. In our semi-parametric duration analysis, we find that performance variables are important in determining career length. We find no evidence that race affects the career duration of black hitters. Past research had suggested that discrimination by majority, white fans led owners in sports to keep less talented white players on rosters. Our results suggest that team owners in the pursuit of championships keep talented players regardless of race. This is an affirmation of Becker's theoretical implications of market competition overcoming discrimination.
    Date: 2007
    Abstract: The coaching carousel or turnover is an extreme but frequently occurring phenomenon in soccer. This study examines the effectiveness and efficiency of firing the coach in terms of team performance. In general, the purpose of coach turnover is to improve results in the short run. Therefore, the period of four games before and four games after the date of resignation is the focus of this paper. The hypotheses are set up within the concepts of the organizational learning theory. We analysed the effect of dismissing coaches by examining data from 8392 Belgian soccer games in the first, second and third national divisions; we found that many of the teams whose performance had declined over approximately two months had dismissed their coaches. Within four games under the management of a new coach, team performance improved. However, further analyses revealed that this increase was due to regression to the mean and cannot be attributed to the new coach. A control group comprising teams that had an equal performance dip but did not dismiss their coach showed a similar improvement. We conclude that coach turnover in Belgian soccer is neither an effective nor efficient means to improve performance in the short term.
    Date: 2007–01
  4. By: Peter A. Groothuis; Richard Hill; Timothy Perri
    Abstract: This paper explores the dilemma of choosing talent using NBA data from 1987-2003. We find that there is much uncertainty in selecting talent. If superstars are found they are usually identified early, however, more false positive exist than correct decisions with high draft picks. Our results suggest that the dilemma of choosing talent is not so much a winner’s curse but more like a purchase of a lottery ticket. Most times you lose but if you are going to win you must buy one.
    Date: 2007

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