The Laffer Curve is a unicorn-y concept that seeks to explain the rate of taxation at which revenues will fall because earners either move away or decide to earn less (or cheat more, I guess).
If I were a tax scholar interested in this concept, I would be taking a good, hard look at the current behavior of top-tier professional athletes. Boxing is particularly interesting because it allows a participant to choose where he performs. If you are a pro golfer or tennis player, you might be inclined to skip a particular event because of a tax situation, but you generally need to play where the event is happening. A top-ranked boxer, meanwhile, can fight where he gets the best deal.
Which is why it’s interesting to read that Manny Pacquiao will probably never fight in New York — primarily, says promoter Bob Arum, because of the taxes he’d have to pay. Read More »
Rutgers University fired Mike Rice – the head basketball coach – last Wednesday. This firing came about after ESPN released a video that showed Rice abusing his players. Such a video had already been seen by Rice’s boss at Rutgers in November, but until the video was shown to the public, Rutgers did not feel compelled to fire Rice.
The thing that people don’t want to hear, but which is true, is that this is probably closer to the norm than not.
Shirley goes on to note that he doesn’t think many coaches are actually hitting players. But he does note that coaches do tend to have a certain approach in conveying information to players (an approach Shirley describes in the interview).
Is this general approach to coaching effective? To date, I am not aware of any study of the effectiveness of college coaching. A study I co-authored with Mike Leeds, Eva Marikova Leeds, and Mike Mondello and published in the International Journal of Sport Finance (full PDF here) looked at 62 NBA coaches across thirty years of data. Across this sample, only 14 coaches were found to have a statistically significant and positive impact on player performance. So most NBA coaches do not appear to make their players more productive. Read More »
A recent paper (full PDF here) by Young Hoon Lee and Seung Chan Ahn makes a clever point about occupations in which people are paid for a main activity and a secondary area where success depends on productivity in the main activity. If success in the latter also depends on some other characteristic, people who are well-endowed with that characteristic will invest more in the skills needed to be productive in the main activity: the incentives created by that synergy will spill over to earnings in the main activity.
Their example is the Ladies Professional Golf Association (LPGA). Better-looking golfers get lower scores (perform better) — but only going from average-lookers to the best-looking. Below the average, there’s no effect of differences in looks on tournament scores. That makes sense — you probably won’t get more endorsement opportunities if you’re average-looking instead of bad-looking. Although not golf, one might call this the Sharapova Effect. Are there other labor markets, or other activities, in which a similarly unusual synergy exists??
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Spending on big-time college athletics is often justified on the grounds that athletic success attracts students and raises donations. Testing this claim has proven difficult because success is not randomly assigned. We exploit data on bookmaker spreads to estimate the probability of winning each game for college football teams. We then condition on these probabilities using a propensity score design to estimate the effects of winning on donations, applications, and enrollment. The resulting estimates represent causal effects under the assumption that, conditional on bookmaker spreads, winning is uncorrelated with potential outcomes. Two complications arise in our design. First, team wins evolve dynamically throughout the season. Second, winning a game early in the season reveals that a team is better than anticipated and thus increases expected season wins by more than one-for-one. We address these complications by combining an instrumental variables-type estimator with the propensity score design. We find that winning reduces acceptance rates and increases donations, applications, academic reputation, in-state enrollment, and incoming SAT scores.
Olympic athletes have become increasingly reliant on scientists as advisers. A Wired article by Mark McClusky explores the efforts of sports scientists to improve athletic performance as gains have become harder to achieve. The Australian Institute of Sport is leading the charge; its success is best-demonstrated by an example from the skeleton, a sledding event that was recently reintroduced as an Olympic event:
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They determined that one significant predictor of success had nothing to do with the sled itself or even the skill of the pilot. The faster a competitor pushed the sled through the 30-meter start zone before jumping on it, the better they performed. So researchers set up a national testing campaign, looking for women with backgrounds in competitive sports who excelled at the 30-meter sprint. They also evaluated candidates to see how well they responded to feedback and coaching. Eventually, they picked a group of 10 athletes—including track sprinters, a water skier, and several surf lifesavers, an Australian sport that requires sprinting through sand.
What do girls think when they see their favorite soccer start posing in Sports Illustrated in a bikini instead of a soccer jersey? A new study, summarized by the BPS Research Digest, surveyed girls after they viewed five images of either “female athletes in a sporting context in their full sporting attire,” “female athletes in a sexualized context,” or “bikini-clad magazine models given random names.” Here’s the BPS Digest:
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The key finding is that the girls and undergrads who viewed the sexualized athlete images tended to say they admired or were jealous of the athletes’ bodies, they commented on the athletes’ sexiness, and they evaluated their own bodies negatively. Some also said they found the images inappropriate. The participants who viewed the bikini-clad glamour models responded similarly, except they rarely commented on the inappropriateness of the images, as if they’d come to accept the portrayal of women in that way…
There’s an interesting story in today’s Wall Street Journal, by Katherine Hobson about a new method some cardiologists have come up with to better diagnose life-threatening heart conditions among student athletes. Apparently, since the hearts of well-conditioned athletes sometimes put out more electrical voltage than average, their ECG’s can often look like that of someone with a heart problem. This has led to an underestimation of the risks that sudden cardiac death (SCD) poses to student athletes, according to the study, even though it’s their leading medical cause of death during exercise. The findings were published this month in the American Heart Association journal Circulation. You can read the abstract here.
What really caught my eye though was an info-graphic the WSJ ran next to the story. Using data from Circulation, the graphic depicts the overall rates of SCD, from high to low, per year among NCAA college athletes, broken out by different sports. Read More »