nep-spo New Economics Papers
on Sports and Economics
Issue of 2011‒03‒12
two papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Police and Thieves in the Stadium: Measuring the (Multiple) Effects of Football Matches on Crime By Marie Olivier
  2. Regime Switching and Wages in Major League Baseball under the Reserve Clause By Haupert, Michael; Murray, James

  1. By: Marie Olivier (METEOR)
    Abstract: During large sporting events criminal behaviour may be affected via three main channels: (i) fan concentration, (ii) self incapacitation, and (iii) police displacement. In this paper I exploit information on football (soccer) matches for nine London teams linked to detailed recorded crime data at the area level to empirically estimate these different effects. My findings show that only property crime significantly increases in the communities hosting football matches but that they experience no changes in violent offences. These results are robust to controlling for a large number of game type and outcome characteristics. There is no evidence of temporal displacement of criminal activity. Our conceptual model suggests that the away game attendance effect on crime is due to voluntary incapacitation of potential offenders. I argue that the police displacement effect of hosting a match increases property crime by 7 percentage point for every extra 10,000 supporters.
    Keywords: public economics ;
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:dgr:umamet:2011015&r=spo
  2. By: Haupert, Michael; Murray, James
    Abstract: Over the course of the 20th century American wages increased by a factor of about 100, while the wages of professional baseball players increased by a factor of 450, but that increase was neither smooth nor consistent. We use a unique and expansive dataset of salaries and performance variables of Major League Baseball pitchers that spans over 400 players and 60 years during the reserve clause era to identify factors that determine salaries and examine how the importance of various factors have changed over time. We employ a Markov regime-switching regression model borrowed from the macroeconomics literature which allows regression coefficients to switch exogenously between two or more values as time progresses. This method lets us identify changes in wage determination that may have occurred because of a change in the league's competitiveness, a change in the relative bargaining power between players and teams, or other factors that may be unknown or unobservable. We find that even though Major League Baseball was a tightly controlled monopsony with the reserve clause, there was a significant shift in salary determination that lasted from the Great Depression until after World War II where players' salaries were more highly linked to their recent performance.
    Keywords: Major League Baseball; Salary determination; Markov-Regime switching
    JEL: J31 C23 C22
    Date: 2011–02–23
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:29094&r=spo

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