A Bayesian stochastic frontier of Italian football

Abstract

This study analyses the technical efficiency of Serie A Italian football clubs during the 2004–2012 seasons with a Bayesian stochastic frontier model using unique data extracted from clubs’ annual reports. Specifically, the focus of the study is on assessing the impact effects on clubs’ efficiency whether they are big clubs, they employ several foreign player, they compete in European competitions and their involvement with football scandals in the Italian football. The empirical results reveal that efficiency varies among the clubs analysed and policy implications are derived.

Keywords:

• Italy
• football clubs
• stochastic Bayesian frontier
• corruption

JEL Classification:

• L83
• C11

Funding

Financial support from national funds by FCT (Fundação para a Ciência e a Tecnologia). This article is part of the Strategic Project: PEst-OE/EGE/UI0436/2014