Journal of Sports Economics

This paper evaluates National Basketball Association teams performance using a two-stage approach under a metafrontier framework. Our approach decomposes overall efficiency into salary-cap and on-court efficiency. Organizational gaps between different organizational structures are calculated as well. The introduction of the salary cap as an important element for a competitive market preventing monopoly formation allows the examination of the effects on different types of performance. Findings reveal that teams experience increased performance while organizational gaps decline. Moreover, a b e t a and s i g m a convergence analysis reveals convergence patterns. Finally, the catch-up index denotes that the speed of convergence increases, especially after the salary cap policy implementation.

This paper uses 2011–2019 data from the Chinese Basketball Association to assess the determinants of playing time with a focus on the effects of players’ national origin. Playing time is explained by an array of standard performance variables as well as each player's characteristics (such as age, height, and weight). Controlling for these factors, we test for whether there is any evidence of preferential treatment for foreign players over Chinese players. Our findings, using both a fixed effects model and the Oaxaca–Blinder decomposition approach, offer consistent support for discrimination in favor of U.S. players and other foreign nationals. Intriguingly, Chinese coaches discriminate against Chinese players even more than non-Chinese coaches. We argue that foreign players draw attendance and hence receive more playing time than is justified by their performance alone.

In May 2018, the Supreme Court overturned the Professional and Amateur Sports Protection Act, thereby allowing all states to offer sports betting. Prior to this, Nevada was the only state with unrestricted sports betting. Using sports betting data from Nevada, we estimate long-run and short-run income elasticities to determine the growth and volatility of sports betting as a tax base. Sports gambling grows at a similar rate as state income and is stable and insensitive to short-run shocks to income. However, the amount of money kept by casinos, and hence the state, is small compared to other traditional tax bases.

We ask whether a scandal in a university’s athletics department affects the quality of the incoming student body. To do so, we evaluate the child sex abuse scandal at Penn State University in 2011. The violations involved a former employee with the crimes occurring a decade prior. The plausibly-exogenous shock allows us to make a causal identification of the scandal's effect on the university. We use synthetic control methods establishing economically meaningful impacts. We find that the average high school GPA is 0.12 points less and the proportion of students with high SAT Math scores is down 4.8 percentage points.

Utilizing the set of World Governance Indicators published by the World Bank, this paper finds that scoring highly in an indicator measuring respect for rule of law and control of corruption is associated with fewer athletes disqualified and higher medal shares at the Summer Olympics from 1996–2016. Notable reductions in disqualifications and increases in medal shares occur at coincident percentile ranks in the aforementioned indicator, with nations at the 67^th percentile rank and above having a 13.8% higher probability of medaling and a 12.11% lower probability of having an athlete disqualified. These results uncover a new link between governance and Olympic success and provide support for the existing anti-doping rules and enforcement as, ceteris paribus, it would seem that nations whose athletes respect and abide by the rules achieve higher medal shares than those whose athletes do not.