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

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  • M. Jara
  • D. Paolini

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.

Suggested Citation

  • M. Jara & D. Paolini, 2012. "Management Efficiency in Football: An Empirical Analysis of two Extreme Cases," Working Paper CRENoS 201222, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    • Handle: RePEc:cns:cnscwp:201222
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    5. 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.
    6. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
    7. 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.
    8. 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.
    9. 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 435-444, June.
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    11. B Buraimo & D Forrest & R Simmons, 2009. "Insights for clubs from modelling match attendance in football," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(2), pages 147-155, February.
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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.
    2. Wang, Cindy Shin-Huei & Bauwens, Luc & Hsiao, Cheng, 2013. "Forecasting a long memory process subject to structural breaks," Journal of Econometrics, Elsevier, vol. 177(2), pages 171-184.
    3. NESTEROV, Yurii & NEMIROVSKI, Arkadi, 2012. "Finding the stationary states of Markov chains by iterative methods," LIDAM Discussion Papers CORE 2012058, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. WUNSCH, Guillaume & MOUCHART, Michel & RUSSO, Federica, 2012. "Functions and mechanisms in structural-modelling explanations," LIDAM Discussion Papers CORE 2012056, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Firanchuk, Alexander (Фиранчук, Александр), 2017. "Illegal Re-Export and Analysis of the Effectiveness of the Russian Food Embargo in 2014 [Незаконный Реэкспорт И Анализ Эффективности Российского Продовольственного Эмбарго 2014 Года]," Working Papers 041705, Russian Presidential Academy of National Economy and Public Administration.
    6. ROELS, Guillaume & CHEVALIER, Philippe & WEI, Ying, 2012. "United we stand? Coordinating capacity investment and allocation in joint ventures," LIDAM Discussion Papers CORE 2012045, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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    More about this item

    Keywords

    stochastic production frontier; managerial efficiency; sport economics;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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