Raising salary or redistributing it: A panel analysis of Major League Baseball

Wen-jhan Jane

Economics Letters, 2010, vol. 107, issue 2, 297-299

Abstract: Using data in Major League Baseball (MLB), this article conducts Panel Granger Causality tests for teams' salary structures and corresponding performance. The results show that a reliable way to enhance performance is to compress salaries rather than to enlarge the payroll.

Keywords: Equity; theory; Panel; Granger; Causality; test; Revenue; sharing; Salary; regulation; Tournament; theory (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:107:y:2010:i:2:p:297-299

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