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Evaluation of Talent in a Changing World: The Case of Major League Baseball

Author

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  • Peter A. Groothuis
  • Kurt W. Rotthoff
  • Mark C. Strazicich

Abstract

Comparing talent across time is difficult as productivity changes. To compare talent across time we utilize Major League baseball data from 1871-2010 and time series techniques to determine if the mean and standard deviation of five performance measures are stationary and if structural breaks exist. We identify two structural breaks in the mean slugging percentage: in 1921, the free swinging era of Babe Ruth, and in 1992, the steroid era. Given that productivity changes over time, we develop a simple benchmark technique to compare talent over time and identify superstars. Applications of this measure outside of baseball are also suggested. Key Words: Benchmarking, Major League Baseball, Technology Changes, Structural Breaks

Suggested Citation

  • Peter A. Groothuis & Kurt W. Rotthoff & Mark C. Strazicich, 2013. "Evaluation of Talent in a Changing World: The Case of Major League Baseball," Working Papers 13-15, Department of Economics, Appalachian State University.
    • Handle: RePEc:apl:wpaper:13-15
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    File URL: http://econ.appstate.edu/RePEc/pdf/wp1315.pdf
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    References listed on IDEAS

    as
    1. Marko Terviö, 2009. "Superstars and Mediocrities: Market Failure in the Discovery of Talent -super-1," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(2), pages 829-850.
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    6. Junsoo Lee & Mark C. Strazicich, 2003. "Minimum Lagrange Multiplier Unit Root Test with Two Structural Breaks," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 1082-1089, November.
    7. Junsoo Lee & Mark C. Strazicich, 2001. "Break Point Estimation and Spurious Rejections With Endogenous Unit Root Tests," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(5), pages 535-558, December.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    benchmarking; major league baseball; technology changes; structural breaks;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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