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Competitive Balance: Time Series Lessons from the E nglish P remier L eague
Author(s) -
Lee Young Hoon,
Fort Rodney
Publication year - 2012
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/j.1467-9485.2012.00580.x
Subject(s) - league , balance (ability) , economics , series (stratigraphy) , economic history , physics , psychology , astronomy , paleontology , neuroscience , biology
Structural break points in the F irst D ivision/ E nglish P remier L eague time series of competitive balance identify an E arly P eriod, a Pre‐ W orld W ar II P eriod, a Post‐ W ar P eriod, and a M odern P eriod. The E arly P eriod corresponds to technology diffusion (defense and tactics) along with important economic structural imposition by leagues. The war periods are common to many time series. The M odern P eriod's sharp decline in balance corresponds to the newest version of the C hampions L eague in 1994/1995 and the B osman R uling of 1995. R ottenberg's invariance principle suggests that it would be the former, rather than the latter, responsible for the historical rate of decline that follows this structural break.