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Convergence and clustering in major league baseball: the haves and have nots?

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Author Info
Martin B. Schmidt
David J. Berri

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Abstract

There appear to be two distinct views on the level of competitive balance within Major League Baseball. One view, mostly associated with academics, is that competition is more equal today than it ever has been. The other view, mostly associated with the media and the industry, is that competition is far worse today. The present paper, borrowing from the literature on economic convergence, finds that both views are valid. More specifically, while competitive balance has continued to improve, the improvement has been such as to create distinct convergence clusters. A discussion of the composition of these clusters is offered in the text.

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Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 18 (October)
Pages: 2007-2014
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Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2007-2014

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  1. Newey, Whitney K & West, Kenneth D, 1987. "A Simple, Positive Semi-definite, Heteroskedasticity and Autocorrelation Consistent Covariance Matrix," Econometrica, Econometric Society, vol. 55(3), pages 703-08, May. [Downloadable!] (restricted)
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  2. Loewy, Michael B. & Papell, David H., 1996. "Are U.S. regional incomes converging? Some further evidence," Journal of Monetary Economics, Elsevier, vol. 38(3), pages 587-598, December. [Downloadable!] (restricted)
  3. Kwiatkowski, D. & Phillips, P.C.B. & Schmidt, P., 1990. "Testing the Null Hypothesis of Stationarity Against the Alternative of Unit Root : How Sure are we that Economic Time Series have a Unit Root?," Papers 8905, Michigan State - Econometrics and Economic Theory.
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  4. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-85, December. [Downloadable!] (restricted)
  5. Hobijn, B. & Franses, P.H., 1997. "Asymptotically Perfect and Relative Convergence of productivity," Papers 9725/a, Erasmus University of Rotterdam - Econometric Institute.
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  6. Bernard, Andrew B & Durlauf, Steven N, 1995. "Convergence in International Output," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(2), pages 97-108, April-Jun. [Downloadable!] (restricted)
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  7. Timothy J. Vogelsang & Marc Tomljanovich, 2002. "Are U.S. regions converging? Using new econometric methods to examine old issues," Empirical Economics, Springer, vol. 27(1), pages 49-62. [Downloadable!] (restricted)
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