Institutional Complexity and Managerial Efficiency: A Theoretical Model and an Empirical Application

M. Jara, D Forrest and Dimitri Paolini

Working Paper CRENoS from Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia

Abstract: This paper studies the effect of the level of a firm?s resources on managerial inefficiency. We motivate our analysis with a theoretical model which predicts that better resourced and therefore more complex institutions tend to be more likely to generate x-inefficiency. The empirical analysis estimates stochastic production frontiers for Chilean and Italian football and finds that, consistent with the theoretical predictions, team performance in the Chilean League is mainly explained by institutional factors related to the level of resources available to a club whereas team performance in the Italian League appears in addition to be related to technical decisions taken by management.

Keywords: stochastic production frontier; managerial efficiency; sport economics (search for similar items in EconPapers)
JEL-codes: J44 L83 M50 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-cse and nep-eff
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:cns:cnscwp:201005

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