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Management Efficiency in Football: An Empirical Analysis of two Extreme Cases

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  • M. Jara
  • D. Paolini

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Abstract

Analysis of managerial efficiency in sport economics typically focuses on evaluating coach decisions instead of assessing the organization as a whole. This paper studies the relative importance of variables related to power and managerial decisions by estimating stochastic production frontiers models for the Chilean and Italian football. We find the presence of technical inefficiencies in both cases. However, managerial decisions play a more significant role in the Italian league. This difference can be explained by a less open and balanced competition in the Chilean case, that could be due to financial constraints faced by small clubs in that country.

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Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 201222.

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Date of creation: 2012
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Handle: RePEc:cns:cnscwp:201222

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Keywords: stochastic production frontier; managerial efficiency; sport economics;

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  1. de Dios Tena, Juan & Forrest, David, 2007. "Within-season dismissal of football coaches: Statistical analysis of causes and consequences," European Journal of Operational Research, Elsevier, vol. 181(1), pages 362-373, August.
  2. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
  3. J. Alvarez & D. Forrest & I. Sanz & JD. Tena, 2009. "Impact of Importing Foreign Talent on Performance Levels of Local Co-Workers," Working Paper CRENoS 200914, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  4. Leo Kahane, 2005. "Production Efficiency and Discriminatory Hiring Practices in the National Hockey League: A Stochastic Frontier Approach," Review of Industrial Organization, Springer, vol. 27(1), pages 47-71, 08.
  5. Bernd Frick & Robert Simmons, 2007. "The Impact of Managerial Quality on Organizational Performance: Evidence from German Soccer," Working Papers 0708, International Association of Sports Economists & North American Association of Sports Economists.
  6. Ramón Flores & David Forrest & J. D. Tena, 2010. "Impact on Competitive Balance from Allowing Foreign Players in a Sports League: Evidence from European Soccer," Kyklos, Wiley Blackwell, vol. 63(4), pages 546-557, November.
  7. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  8. El-Hodiri, Mohamed & Quirk, James, 1971. "An Economic Model of a Professional Sports League," Journal of Political Economy, University of Chicago Press, vol. 79(6), pages 1302-19, Nov.-Dec..
  9. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
  10. 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., vol. 27(4), pages 279-285.
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Cited by:
  1. D. Paolini, 2012. "Institutional Complexity and Managerial Efficiency: A Simple Model," Working Paper CRENoS 201223, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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