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on Sports and Economics |
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Issue of 2008‒07‒14
five papers chosen by Joao Carlos Correia Leitao University of the Beira Interior |
| By: | Helmut Dietl (Institute for Strategy and Business Economics, University of Zurich); Egon Franci (Institute for Strategy and Business Economics, University of Zurich); Markus Lang (Institute for Strategy and Business Economics, University of Zurich); Alexander Rathke (Institute for Empirical Research in Economics, University of Zurich) |
| Abstract: | This paper studies the welfare effect of a percentage-of-revenue salary cap in a European context with win-maximizing clubs. It shows that a percentage-of-revenue cap increases competitive balance and decreases the overall salary payments in the league, therefore contributing to financial stability. A percentage-of-revenue cap will always increase social welfare if the weight on aggregate club surplus in the welfare function is sufficiently high. Additionally, if fans’ preferences for aggregate talent are sufficiently high then the percentage-of-revenue cap will also increase social welfare, no matter how much weight the league puts on financial stability. |
| Keywords: | Salary Caps, Social Welfare, Competitive Balance, Team Sports League |
| JEL: | L83 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:iso:wpaper:0086&r=spo |
| By: | Lechner, Michael (University of St. Gallen) |
| Abstract: | This microeconometric study analyzes the effects of individual leisure sports participation on long-term labour market variables, on socio-demographic as well as on health and subjective well-being indicators for West Germany based on individual data from the German Socio-Economic Panel study (GSOEP) 1984 to 2006. Econometric problems due to individuals choosing their own level of sports activities are tackled by combining informative data and flexible semiparametric estimation methods with a specific way to use the panel dimension of the data. The paper shows that sports activities have sizeable positive long-term labour market effects in terms of earnings and wages, as well as positive effects on health and subjective well-being. |
| Keywords: | leisure sports, health, labour market, matching estimation, panel data |
| JEL: | I12 I18 J24 L83 C21 |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3559&r=spo |
| By: | Michael Lechner |
| Abstract: | This microeconometric study analyzes the effects of individual leisure sports participation on long-term labour market variables, on socio-demographic as well as on health and subjective well-being indicators for West Germany based on individual data from the German Socio-Economic Panel study (GSOEP) 1984 to 2006. Econometric problems due to individuals choosing their own level of sports activities are tackled by combining informative data and flexible semiparametric estimation methods with a specific way to use the panel dimension of the data. The paper shows that sports activities have sizeable positive long-term labour market effects in terms of earnings and wages, as well as positive effects on health and subjective well-being. |
| Keywords: | Leisure sports, health, labour market, matching estimation, panel data |
| JEL: | I12 I18 J24 L83 C21 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp114&r=spo |
| By: | Helmut Dietl (Institute for Strategy and Business Economics, University of Zurich); Markus Lang (Institute for Strategy and Business Economics, University of Zurich); Stephan Werner (Institute for Strategy and Business Economics, University of Zurich) |
| Abstract: | In the December 2002 issue of the American Economic Review, Mark Duggan and Steven D. Levitt published an article on corruption in professional sumo. In this article, the authors provide empirical evidence for match rigging in professional sumo. The article caused tremendous attention and uproar because sumo wrestling has a more than 2000 year-old history and is usually characterized by honesty, tradition and rituals. In this paper, we analyze the effect of Duggan and Levitt’s econometric research on corruption in sumo wrestling by comparing the outcome of critical matches before, during and after the period of the publication process. We show that Duggan and Levitt’s study significantly reduced corruption in sumo wrestling. The reduction is caused by two effects. First, the sumo association reacted to Duggan and Levitt’s study by reducing the value of the eighth win. Second, we show that the level of corruption is heavily influenced by public scrutiny. Moreover, we identify two additional strategies for match rigging: sudden weakness and stable reciprocity. |
| Keywords: | Corruption, incentive scheme, social ties, monitoring |
| JEL: | K42 L83 M21 M52 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:iso:wpaper:0085&r=spo |
| By: | Goodall, Amanda H. (University of Warwick); Kahn, Lawrence M. (Cornell University); Oswald, Andrew J. (University of Warwick) |
| Abstract: | Why do some leaders succeed while others fail? This question is important, but its complexity makes it hard to study systematically. We examine an industry in which there are well-defined objectives, small teams, and exact measures of leaders’ characteristics. We show that a strong predictor of a leader’s success in year T is that person’s own level of attainment, in the underlying activity, in approximately year T-20. Our data come from 15,000 professional basketball games. The effect on team performance of the coach’s ‘expert knowledge’ is large and is discernible in the data within 12 months of his being hired. |
| Keywords: | organizational performance, firms, leadership, fixed-effects, productivity |
| JEL: | J24 M51 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3583&r=spo |