RATIONAL EXPECTATIONS AND PRO SPORTS LEAGUES

We put a new set of shoes on that old workhorse, the competitive talent market (CTM) model in sports economics. There exist unique rational expectations equilibria for both national football league (NFL‐type leagues) and major league baseball (MLB‐type leagues) under the CTM model. A cursory statistical test fails to reject the empirical implications for the NFL‐type league. The model also suggests empirical tests of whether or not talent demand (marginal revenues from talent), including induced effects, actually slopes down. But like all models, the competitive talent model should be applied in its context. It describes highly cooperative North American sports leagues that have a wealth of common information. But it may not do the same for other leagues if they lack this common information.     

Land inequality and economic growth: a dynamic panel data approach

The growing body of literature devoted to studying the impact of inequality on economic growth has centered its attention on the income distribution effect, even though the theoretical relationships are more related to assets distribution. While some recent studies have tried to overcome this limitation by introducing asset indicators, they meet new constraints when dealing only with time-invariant measurements for this explanatory variable. This article provides a theoretical discussion and some novel empirical tests to better understand the relationships between assets distribution and economic growth. We assembled a new panel database that includes observations for more than 30 countries over the last three decades. The data include a time-varying variable for changes in the Land Gini index over this period that enables us to overcome the limitations of previous studies. A system general method of moments (GMM) estimator is used to generate truly unbiased and consistent estimates for the parameters of interest. We explore some of the likely channels through which asset distribution and economic growth may be linked, paying particular attention to the role of secure property rights and the relations between land ownership and education. We find robust and significant negative signs for land inequality in the growth regressions, indicating that changes in asset distribution are an important factor for economic development.     

Just looking for a good game: competitive balance in the Korean Professional Baseball League

Rottenberg’s uncertainty of outcome hypothesis is about preferences that can vary across fans and sports. We provide the first evidence of the empirical power of the hypothesis in the Korean Professional Baseball League (KPBL). In a panel data set, team-level aggregation over years shows that fans of this league attend in ways consistent with the hypothesis at the level of game uncertainty and consecutive season uncertainty, but only the first is statistically significant. KPBL fans appear to just be looking for a good game. This is consistent with the nearly complete concentration of post-season participation among a very few teams outside of the major population centre in Seoul and a lack of local team identification among KPBL fans. Our work adds to the diversity of league structures in the competitive balance literature since talent levels in KPBL are the result of parent company advertising choices rather than geographic identification. There are research questions and a policy implication.     

Teaching financial literacy: a survey of community‐based educators

A nationwide online survey of financial educators in adult community‐based financial education programmes in the US was conducted to examine teaching beliefs, related curriculum and teaching strategies used to reach underserved populations. A transformative learning theoretical framework was used to discover how financial education engages learners in relation to their own lives. Survey findings indicate in community‐based settings financial educators are largely White, female, college educated and with multiple years of experience; believe their role is to provide expert information to help learners make informed financial choices; and often adapt published materials to reflect the life circumstances of learners. Learners are more racially diverse than educators, most having attended high school, who identify their own financial need to attend the programmes. Programmes do not often target specific groups, are frequently free and can take place in a variety of face‐to‐face settings. Implications indicate best practices for financial educators require inclusive, culturally responsive pedagogies.     

Attendance and the Uncertainty-of-Outcome Hypothesis in Baseball

Sports offer interesting insights into demand due to the added twist of fan preferences for outcome uncertainty. We add to and amend previous work by analyzing the time series behavior of Major League Baseball attendance (1901–2003) using break point analysis, exploring a wide variety of measures of game uncertainty, playoff uncertainty, and consecutive season uncertainty. Only playoff uncertainty is statistically significant, and it is economically significant only for (1) truly ambitious intervention and (2) recent history. The policy implication is that actual league choices may be motivated by wealth redistribution rather than concerns over competitive balance.      

The budget impact of using enteric-coated aspirin 325 mg + immediate-release omeprazole 40 mg to prevent recurrent cardiovascular events

Objective: Aspirin (acetylsalicylic acid; ASA) is commonly used for secondary prevention of cardiovascular (CV) events, but may be associated with gastrointestinal (GI) adverse events, which can reduce adherence. Use of ASA co-therapy with proton pump inhibitors in patients at risk may be suboptimal. PA32540 (Yosprala?) is a coordinated-delivery tablet combining EC-ASA 325?mg and immediate-release omeprazole 40?mg. The objective of this flexible budget impact model was to project the financial consequences of introducing PA32540 325?mg/40?mg to prevent recurrent CV events, while reducing ASA-associated GI events in US adults.

Methods: A Markov Model was employed to estimate health state transitions associated with ASA 75–325?mg, ASA 75–325?mg?+?generic delayed-release omeprazole 40?mg, PA32540, or clopidogrel 75?mg to prevent recurrent CV events. Health states included ulcers, GI bleeding, CV events, and death. Model inputs included demographics, treatment dosages, treatment costs, adverse GI and CV events, and premature death. Data from peer-reviewed literature and censuses enabled appropriate allocation of CV and GI disease prevalence and mortality. The PA32540 non-adherence rate was conservatively set at 20%. PA32540 market share was set to 50%.

Results: The model projected annual savings of $81.0 million to $190.9 million within 1–5 years after PA32540 introduction to the plan, which included 134,558 members at risk for recurrent CV events. These values translate into savings of $602 (year 5) to $1,419 (year 1) per patient per year, and $81 (year 5) to $191 (year 1) per member per year. These values were robust to variations in parameters under a deterministic sensitivity analysis.

Conclusion: PA32540 use to prevent recurrent CV events was associated with cost reductions in each year examined with the model. From a health plan perspective, PA32540 is likely to have a net overall effect, resulting in significant cost savings.     

Teaching Business Ethics: Theory and Practice

Business ethics teaching can be improved when ethicists integrate the ethical theories they apply to business with the organizational design of the course. By utilizing three techniques – implementing a Total Quality Management-style survey and review, nominating and electing class virtues, and telling personal stories of moral action – classes can be organized to operate by the social contract, rights, stakeholder, and virtue theories that dominate business ethics literature. Classes then become laboratories for the practical articulation and application of the theories as well as providing real examples of the theories in action. This methodology produces benefits for the particular class and for the development and refinement of the theories themselves.This paper describes each of the three pedagogical techniques; and then explicitly relates them to these leading business ethics theories to demonstrate how the integration can lead to a community seeking and discovering moral truth in the classroom.