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Individual efficiency and club performance: a panel analysis of professional baseball

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  • Wen-Jhan Jane

    (Department of Economics, Shih Hsin University, Taipei, Taiwan)

  • Wei-Hsin Kong

    (Graduate Institute of Industrial Economics, National Central University, Jungli, Taiwan)

  • Yi-Hsiue Wang

    (Department of Economics, Shih Hsin University, Taipei, Taiwan)

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    Abstract

    This paper investigates whether players' individual- and club-level efficiency has substantial impact on club performance in the Chinese Professional Baseball League (CPBL). Using data from 1990 to 2000, and a stochastic frontier model, we propose a different way to measure club-level efficiency. Our empirical results indicate that club-level efficiency is crucial to club performance, measured by the winning percentage. Although the literature shows that some inefficient clubs with abundant resources are still very successful on the diamond, our results confirm that club-level efficiency has a moderate impact on the success of a baseball club in the CPBL. Copyright © 2010 John Wiley & Sons, Ltd.

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    File URL: http://hdl.handle.net/10.1002/mde.1497
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

    Volume (Year): 31 (2010)
    Issue (Month): 5 ()
    Pages: 363-372

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    Handle: RePEc:wly:mgtdec:v:31:y:2010:i:5:p:363-372

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    Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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    1. Dawson, Peter & Dobson, Stephen & Gerrard, Bill, 2000. "Estimating Coaching Efficiency in Professional Team Sports: Evidence from English Association Football," Scottish Journal of Political Economy, Scottish Economic Society, Scottish Economic Society, vol. 47(4), pages 399-421, September.
    2. Battese, George E. & Corra, Greg S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 21(03), December.
    3. Leo Kahane, 2005. "Production Efficiency and Discriminatory Hiring Practices in the National Hockey League: A Stochastic Frontier Approach," Review of Industrial Organization, Springer, Springer, vol. 27(1), pages 47-71, 08.
    4. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, Elsevier, vol. 38(3), pages 387-399, July.
    5. Lawrence Hadley & Marc Poitras & John Ruggiero & Scott Knowles, 2000. "Performance evaluation of National Football League teams," Managerial and Decision Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 21(2), pages 63-70.
    6. Zak, Thomas A & Huang, Cliff J & Siegfried, John J, 1979. "Production Efficiency: The Case of Professional Basketball," The Journal of Business, University of Chicago Press, University of Chicago Press, vol. 52(3), pages 379-92, July.
    7. J. A. Hausman, 1976. "Specification Tests in Econometrics," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 185, Massachusetts Institute of Technology (MIT), Department of Economics.
    8. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, Elsevier, vol. 6(1), pages 21-37, July.
    9. Fiona Carmichael & Dennis Thomas & Robert Ward, 2000. "Team performance: the case of English Premiership football," Managerial and Decision Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 21(1), pages 31-45.
    10. DepkenII, Craig A., 2000. "Wage disparity and team productivity: evidence from major league baseball," Economics Letters, Elsevier, Elsevier, vol. 67(1), pages 87-92, April.
    11. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, Springer, vol. 20(2), pages 325-32.
    12. Richard A. Hofler & James E. Payne, 2006. "Efficiency in the National Basketball Association: a stochastic frontier approach with panel data," Managerial and Decision Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 27(4), pages 279-285.
    13. Scully, Gerald W, 1974. "Pay and Performance in Major League Baseball," American Economic Review, American Economic Association, American Economic Association, vol. 64(6), pages 915-30, December.
    14. Joachim Nyemeck BINAM & Jim GOCKOWSKI & Guy Blaise NKAMLEU, 2008. "Technical Efficiency And Productivity Potential Of Cocoa Farmers In West African Countries," The Developing Economies, Institute of Developing Economies, Institute of Developing Economies, vol. 46(3), pages 242-263.
    15. Hofler, Richard A. & Payne, James E., 1997. "Measuring efficiency in the National Basketball Association1," Economics Letters, Elsevier, Elsevier, vol. 55(2), pages 293-299, August.
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