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Salary cap and National Basketball Association teams' productive performance. A two stage Data Envelopment Analysis approach under a metatechnology framework

Chatzistamoulou Nikolaos, Antonakis Theodoros and Kostantinos Kounetas ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper evaluates NBA team's productive performance using a two-stage approach under a metafrontier framework. The proposed approach decomposes overall efficiency into salary-cap and on-court efficiency while a structure type of heterogeneity arises in the context of East and West conferences. The inclusion of salary cap, an important contributing element, as an input allow us to examine its effect on different types of efficiency. The empirical results show that NBA teams present a diachronically performance in terms of overall, on court and salary cap efficiency. Moreover, technology gaps reduce over time while a beta and sigma convergence examination reveal a path of convergence. Finally, a catch-up index denotes a speed of convergence especially after the salary cap implementation.

Keywords: Salary cap; National basketball association; two-stage production process; Metatechnology production function (search for similar items in EconPapers)
JEL-codes: C44 D24 Z0 (search for similar items in EconPapers)
Date: 2020-02-06
New Economics Papers: this item is included in nep-eff and nep-spo
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