Team payroll, pitcher and hitter payrolls and team performance: Evidence from the U.S. Major League Baseball

Authors

  • Xing Lu Judd Leighton School of Business and Economics, Indiana University South Bend, South Bend, USA
  • Jason Matthews Gäshawk, South Bend, USA
  • Miao Wang Department of Economics, Marquette University, Milwaukee, USA
  • Hong Zhuang Indiana University South Bend

DOI:

https://doi.org/10.17811/ebl.7.2.2018.62-69

Abstract

We use the U.S. Major League Baseball team level data in 1985-2015 and find an inverse U-shaped relationship between team payrolls and winning percentages. Furthermore, when investigating the winning effects of pitcher and hitter payrolls, we find the similar curvilinear relationship between pitcher/hitter salaries and team performance.

Author Biography

Hong Zhuang, Indiana University South Bend

Judd Leighton School of Business and Economics

Associate Professor of Economics

References

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Published

09-07-2018

How to Cite

Lu, X., Matthews, J., Wang, M., & Zhuang, H. (2018). Team payroll, pitcher and hitter payrolls and team performance: Evidence from the U.S. Major League Baseball. Economics and Business Letters, 7(2), 62–69. https://doi.org/10.17811/ebl.7.2.2018.62-69

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Section

Articles