Economics

Permanent URI for this community

https://hdl.handle.net/10468/761

Browse

Now showing 1 - 20 of 205

Addressing market segmentation and incentives for risk selection: how well does risk equalisation in the Irish private health insurance market work?
(Economic and Social Studies, 2017-03) Keegan, Conor; Teljeur, Conor; Turner, Brian; Thomas, Steve; Health Research Board
This study assesses the efficacy of Ireland’s recently introduced risk equalisation scheme in its voluntary health insurance market. Robust risk equalisation is especially important in an Irish context given acute risk segmentation and incentives for risk selection that have evolved within the market. Using uniquely acquired VHI data (N=1,235,922) this analysis assesses the predictive efficacy of both current and alternative risk equalisation specifications. Results suggest that the low predictive power of the current risk equalisation design (R2 = 6.8 per cent) is not appropriately correcting for anti-competitive incentives and asymmetries in the market. Improvements to the current design could be achieved through the introduction of diagnosis-based risk adjusters.
Addressing strategy and innovation in family business practice; a process of adaptive change
(University College Cork, 2018) Gleeson, Peter; Doyle, Eleanor
This Portfolio of Exploration documents the transformation in my management practice from an operational to a strategic orientation. The central research question revolves around the impact of a process of adaptive change on my management and a series of business implementation actions. My operational approach had reached its limits with the 2009 construction industry recession exposing the invalidation of the assumptions underlying my management practice. I engage in a process of adaptive change to formulate responses to the changed operating environment both in terms of strategy and innovation. The process is organised into a set of three essays. In Essay One, I engage in a Professional Development Review to trace the development of my meaning making and to surface the theories underlying my management practice. I reflect on how my background in family business and accountancy training has shaped my ‘hegemonic assumptions’ (Brookfield, 1995). I structure the review using the Adult Mental Development theory of Kegan (1994, Kegan & Lahey, 2009). I document my experiences since returning to manage the family business and outline the developmental goals pursued in the remainder of the Portfolio. In Essay Two, I explore the themes underlying my developmental goals by engaging with source thinkers in the Reading for Change Essay. The movement generated in my meaning making enables me to re-define my management practice. I apply an adaptive approach to reading Porter (1980, 1985, 2008) and to analyse my operating environment. Based on this re-reading, I develop a strategy for my business, incorporating advances in strategy since the launch of Porter. I examine the business model assumptions underlying my practice using Brookfield (1995) and Drucker (1994) and explore the role of assumptions in driving business models. I demonstrate the impact of my new management practice in Essay Three, Transforming Practice. Through a series of action research projects, I demonstrate how my practice has been transformed and the effect on the operations of my business. The action projects illustrate the application of previously unused productive managerial resources to business development. In the Portfolio Conclusion, I conclude that adopting a strategic perspective is essentially a higher-order mental demand and requires meaning making operating at that level. This work adds to knowledge in the family business and strategic management areas by demonstrating the impact of an adaptive change process on the effectiveness of management practice. It also reviews the impact of adaptive change on the innovative projects pursued. I set out the implications of this for my selected audience, i.e. practitioners operating in a family business environment and those operating in the SME sector of a commoditised industry with strong competitive forces along with researchers, advisors and policy makers in these areas.
After the reforms: An analysis of the factors associated with the use of legal services in child welfare proceedings in Ireland
(IJMESS International Publishers, 2019) Walsh, Edel; Murphy, Aileen; Halton, Carmel; Harold, Gill; Irish Research Council
Against the backdrop of austerity measures and public sector reforms in Ireland, this paper examined legal costs incurred in child welfare proceedings by the State Child and Family Agency - Tusla, using a need-based allocation model. The direct financial costs of engaging with legal services, necessitated by the adversarial nature of child welfare proceedings, were scrutinized to determine if resources were allocated based on need. Adopting a cross-sectional research design, secondary data (obtained from the organization’s financial billing system. n =1032) were employed in an econometric analysis examining the factors influencing variations in Tusla’s legal expenditure. The dependent variable was total amount billed by legal firm per observation and the independent variables included type of legal activity involved (a proxy for need), geographical location and type of legal personnel (supply factor). Type of legal personnel, volume and type of legal activity have significant positive effects on legal spend. Administrative area does not significantly affect spending on legal services. We found that engagement with legal services, demanded by the adversarial nature of child welfare proceedings, has considerable cost implications; however, does seem to be allocated on the basis of need. The findings can be employed to increase the organization’s awareness of costs.
Agglomeration, urbanization and competitive performance: the natural experiment of English football
(Taylor & Francis, 2019-08-08) Jones, Calvin; Jordan, Declan
There are sound theoretical and empirical bases for expecting productivity and innovative benefits for businesses located in large urban areas, and for those located closer to others in the same or related industries. However, the size and precise origin of these effects remain uncertain and complicated by potential endogeneity from businesses’ location choice. English football is proposed as a natural experiment with immobile businesses and evidence is presented from the English Premier League (EPL) that suggests urban scale affects clubs’ relative performance. It is found that teams in larger conurbations perform relatively better, and it is suggested these benefits probably originate from the sport’s novel labour market.
Alcohol income and health: a complicated but desirable mix
(University College Cork, 2014) Ormond, Gillian; Murphy, Rosemary
The aim of this thesis is to examine if a difference exists in income for different categories of drinkers in Ireland using the 2007 Slán data set. The possible impact of alcohol consumption on health status and health care utilisation is also examined. Potential endogeneity and selection bias is accounted for throughout. Endogeneity is where an independent variable included in the model is determined within the context of the model (Chenhall and Moers, 2007). An endogenous relationship between income and alcohol and between health and alcohol is accounted for by the use of separate income equations and separate health status equations for each category of drinker similar to what was done in previous studies into the effects of alcohol on earnings (Hamilton and Hamilton, 1997; Barrett, 2002). Sample selection bias arises when a sector selection is non-random due to individuals choosing a particular sector because of their personal characteristics (Heckman, 1979; Zhang, 2004). In relation to alcohol consumption, selection bias may arise as people may select into a particular drinker group due to the fact that they know that by doing so it will not have a negative effect on their income or health (Hamilton and Hamilton, 1997; Di Pietro and Pedace, 2008; Barrett, 2002). Selection bias of alcohol consumption is accounted for by using the Multinomial Logit OLS Two Step Estimate as proposed by Lee (1982), which is an extension of the Heckman Probit OLS Two Step Estimate. Alcohol status as an ordered variable is examined and possible methods of estimation accounting for this ordinality while also accounting for selection bias are looked at. Limited Information Methods and Full Information Methods of estimation of simultaneous equations are assessed and compared. Findings show that in Ireland moderate drinkers have a higher income compared with abstainers or heavy drinkers. Some studies such as Barrett (2002) argue that this is as a consequence of alcohol improving ones health, which in turn can influence ones productivity which may ultimately be reflected in earnings, due to the fact that previous studies have found that moderate levels of alcohol consumption are beneficial towards ones health status. This study goes on to examine the relationship between health status and alcohol consumption and whether the correlation between income and the consumption of alcohol is similar in terms of sign and magnitude to the correlation between health status and the consumption of alcohol. Results indicate that moderate drinkers have a higher income than non or heavy drinkers, with the weekly household income of moderate drinkers being €660.10, non drinkers being €546.75 and heavy drinkers being €449.99. Moderate Drinkers also report having a better health status than non drinkers and a slightly better health status than heavy drinkers. More non-drinkers report poor health than either moderate or heavy drinkers. As part of the analysis into the effect of alcohol consumption on income and on health status, the relationship between other socio economic variables such as gender, age, education among others, with income, health and alcohol status is examined.
Analysing national innovation capacity and its importance for competitiveness and growth
(Inderscience, 2018-04-25) Doran, Justin; McCarthy, Nóirín; O'Connor, Marie
This paper uses data from the OECD's Scientific and Technological database and the Global Competitiveness Report (GCR) to analyse the national innovation capacity of nineteen OECD countries over the time period 2001 to 2007. A total of three sub-indexes are constructed which rank the strength of the common innovation infrastructure, cluster specific environment and quality of linkages which exist within each of the countries. These sub-indexes form the basis of an overall index measuring countries' national innovation capacity. The results indicate that each of the three components considered are important in explaining the innovation output of the countries studied. Further to this, national innovation capacity is found to have a positive effect on GDP per capita and on a country's GCR ranking. However, national innovation capacity in 2001 is found to be negatively associated with the subsequent growth rate of GDP per capita. This counterintuitive result may arise due to determinants of growth other than innovation such as capital and labour accumulation.
An analysis of management practices across firm ownership: the case of standalone domestic firms, domestic groups and multinational enterprises
(World Scientific Publishing, 2020-06-25) Bourke, Jane; Crowley, Frank; Doran, Justin; McDonnell, Anthony
Management practices are important drivers of firm productivity [Bloom et al. (2019), What drives differences in management practices? American Economic Review, 109(5), 1648–1683]. While differences in the formalisation and sophistication of management practices are evident in comparisons of foreign multinationals and domestic firms [Bloom et al. (2012). Americans do IT better: US multinationals and the productivity miracle. American Economic Review, 102(1), 167–201. Bloom and Van Reenen (2007a). Measuring and explaining management practices across firms and countries, Quarterly Journal of Economics, 122(4), 1351–1408. Bloom and Van Reenen (2010). Why do management practices differ across firms and countries? Journal of Economic Perspectives, 24(1), 203–224], a striking omission from many studies is the failure to distinguish between domestic firms and domestically owned multinationals [McDonnell et al. (2012). Human resource management in multinational enterprises: Evidence from a late industrializing economy. Management International Review, 54(3), 361–380]. We merge the World Management Survey with the FAME dataset to examine the influence of firm ownership (standalone domestic firms; domestic groups; domestic owned multinationals; foreign owned multinationals) across a broad range of management practices. Foreign owned multinationals exhibit the highest formalisation and sophistication of management practices compared to all other firm types. However, significant asymmetries exist between different management practices across firm ownership. This is important as it raises questions as to whether there is sufficient learning and transfer of practices taking place across firms.
An analysis of public and private sector earnings in Ireland 2008-2013
(PublicPolicy.ie, 2016-07-22) Doran, Justin; McCarthy, Nóirín; O'Connor, Marie
Written by researchers from the UCC School of Economics and commissioned by Publicpolicy.ie, this report analyses public and private sector earnings in Ireland 2008-13. Data is used only for over 650,000 individuals who were in employment for the full period 2008 to 2013, worked a minimum of 48 weeks a year, and earned at least €10,000 a year.
An analysis of the interdependence of demographic factors, labour effort and economic growth in Ireland
(Emerald Group Publishing Limited, 2012-03) Doran, Justin
Purpose – The purpose of this article is to analyse the effects of a declining birth rate and an increasing old age-population ratio on Ireland’s economic output. Design-Methodology/Approach – This paper utilises data on the birth rate, old-age population ratio, economic output and labour effort of the Irish economy to estimate a vector-autoregressive model. The results of this model are then analysed to test for the presence of Granger causality among these variables. In doing so it is possible to assess whether there are statistically significant causal relationships existing among these factors. Subsequently, impulse response functions are derived from this model in order to assess the magnitude of the causal relationships. Findings - The results suggest that declining fertility rates and increases in the old-age dependency ratio have a significant impact on labour effort and economic output. Labour effort is also found to explain variation in the fertility rate and economic output. Economic output is found to effect labour effort and the fertility rate. Social Implications – The results derived in this paper raise interesting policy implications. It is evident that Ireland’s declining birth rate and increasing old-age population ratio are creating a demographic situation which will have implications for future economic growth. Policies need to be put in place to mitigate the negative effects these factors will have on Irish growth. Originality/Value – This paper adopts modern econometric techniques to assess the causal relationships which exist between the demographic and economic factors considered. These have not previously been applied to the Irish situation. In doing this, this paper provides an important insight into the changing dynamics of the Irish economy.
Are different forms of innovation complements or substitutes?
(Emerald Group Publishing Limited, 2012) Doran, Justin
Purpose – The purpose of this paper is to provide an empirical analysis of whether differing forms of innovation act as complements or substitutes in Irish firms’ production functions. Design/methodology/approach – The approach adopted by this paper is empirical in nature. Data are obtained for approximately 582 firms from the Irish Community Innovation Survey 2004-2006. In total, four forms of innovation activity are identified: new to firm product, new to market product, process and organisational innovation. Formal tests for complementarity and substitutability are applied to these types of innovation to assess whether they have a complementary effect on firms’ turnover. Findings – The results suggest that there is a substantial degree of complementarity among different forms of innovation. Out of six possible innovation combinations, three are complementary while none exhibits signs of substitutability. Social implications – From a business perspective, the importance of organisational change to facilitate technological innovation is highlighted, while from a policy perspective the importance of the incentivisation of organisation and process innovation is also highlighted. Originality/value – To date, most research has focused on the impact of various forms of innovation, in isolation, on firms’ productivity. They do not consider whether these forms of innovation may in fact be linked, and that by implementing two or more innovations simultaneously, the combined benefits may be greater than the sum of the parts.
Are players born earlier in the calendar year more likely to experience elite dropout?
(University College Cork, 2021) Buckley, Timothy Cathal; Butler, David; Butler, Robert; Jordan, Declan
The relative age effect (RAE) has been consistently documented among elite football players at youth level but has been shown to dissipate at senior level. This research explores whether players born earlier in the calendar year, initially selected to play at an elite level, are more likely to be identified as dropouts at a later date. Statistical analysis is used to test for the presence and extent of RAE from a sample of almost 9,000 elite underage national league football players in the Republic of Ireland. Results reveal a bias towards players born early in the calendar year, and in the first quarter in particular. The bias is most pronounced at the youngest age group included in the analysis, at U15 level. Further statistical analysis assesses the differences between the observed distribution of births of 163 players who were identified as dropouts and the expected distribution of births. Players born earlier in the calendar year are also found to be more likely to be identified as dropouts from underage national league football in the Republic of Ireland. In comparison, their relatively younger counterparts, although less likely to be selected to play at an elite level initially, are significantly less likely to be identified as dropouts. Recommendations made based on the results include adopting a more strategic and long-term approach to be adopted during the initial player selection processes, and further education of coaches regarding youth development as well as the presence and consequences of RAE.
An assessment of the impact of land structure on the economic performance of dairy farming in Ireland
(University College Cork, 2021-11-11) Bradfield, Tracy; Hennessy, Thia; Butler, Robert; Dillon, Emma; Teagasc
The European Union (EU) milk quota was abolished in 2015 leading to an increased demand for land for dairy farming in Ireland. Between 2014 and 2019, raw milk production increased by 42 percent in Ireland (Bradfield et al., 2021a). However, the land market in the Republic of Ireland is restricted by low mobility. The Republic of Ireland’s agricultural land market experiences very low levels of sales with less than 1 percent of agricultural land sold each year (CSO, 2020a). This is attributed to a strong desire of people in Ireland to keep land in the family name. Ireland also has a low level of land rental. To increase land rental on secure leases, the Irish government increased incentives in 2015 for landowners to rent out their land on long term leases. Using econometric techniques applied to farm-level Teagasc National Farm Survey data, which is part of the Farm Accountancy Data Network, this research provides contributions to the study of agricultural land markets that focus on three main research questions. These include an assessment of the factors that influence the decision to rent in agricultural land and the determinants of profit among renting dairy farms in Ireland, the effect of land fragmentation on dairy farm technical inefficiency, and the impact of land lease duration on dairy farm investment. Research findings show that dairy farms are using the rental market to improve profitability. Farm characteristics such as a small size, a high stocking rate, the presence of a successor and high levels of hired labour increase the likelihood of entering a rental agreement. Renting in land and a less fragmented farm structure reduce dairy farm technical inefficiency. Dairy farms can reduce their technical inefficiency by either renting or purchasing land parcels that are adjoining their current land resources. The results also indicate that farms with a high portion of rented land, which is rented on long-term leases, invest more in their herd and capital. This suggests that long-term land rental is a feasible means to create certainty over investments when land purchases are not possible. In conclusion, these findings highlight the benefits of an active land market to individual farmers and the overall dairy sector, which lends support to policy measures to improve the rental market and thus land mobility. Although the number of agricultural land rental agreements has risen since the removal of the EU milk quota and the increase in tax incentives for long-term land leases, Ireland continues to have the lowest level of land rental in the EU, at 19 percent, compared to an average of 54 percent (European Commission, 2018). This research recommends a review of the structure of current tax incentives for long-term leases because the existing thresholds do not maximise incentives for farmers to rent out their land. Other contributions of this research include a greater understanding of markets with an inelastic supply curve, the role long-term leases can play in improving tenure security, the importance of an extensive use of land fragmentation indicators when studying farms’ structures, and the requirement for market intervention to improve land mobility. Topics for further research are also outlined.
Asset price effects arising from sports results and investor mood: the case of a homogenous fan base area
(Dunker & Humblot, 2011) Gallagher, Robert; O'Sullivan, Niall; Irish Research Council for Humanities and Social Sciences
This paper contributes to the behavioural finance literature that examines the asset pricing impact of mood altering events such as sports results, sunshine levels, daylight hours, public holidays, temperature etc. Specifically, we investigate whether variations in investor mood arising from wins and losses in major sporting events have an impact on stock market returns. We examine the case of Ireland. Ireland is an interesting case because its people are passionate about sport, the domestic population is relatively homogenous (rather than divided) in terms of support for Irish competitors in international competition and domestic investors comprise a large proportion of owners of Irish stocks—all factors which suggest that if a mood effect exists it should show up in this case. Generally, we do not find a strong link between sport results and stock market returns. Initial results do suggest that in events of particularly high importance, such as the knock-out stages of major competitions, losses are associated with negative returns. However, on controlling for indirect economic effects of sporting wins and losses such as on tourism and travel we find the mood effect is no longer significant.
The asset pricing effects of UK market liquidity shocks: evidence from tick data
(Elsevier, 2014-03) Foran, Jason; Hutchinson, Mark C.; O'Sullivan, Niall; Irish Research Council for Humanities and Social Sciences; University College Cork
Using tick data covering a 12 year period including much of the recent financial crisis we provide an unprecedented examination of the relationship between liquidity and stock returns in the UK market. Previous research on liquidity using high frequency data omits the recent financial crisis and is focused on the US, which has a different market structure to the UK. We first construct several microstructure liquidity measures for FTSE All Share stocks, demonstrating that tick data reveal patterns in intra-day liquidity not observable with lower frequency daily data. Our asymptotic principal component analysis captures commonality in liquidity across stocks to construct systematic market liquidity factors. We find that cross-sectional differences in returns exist across portfolios sorted by liquidity risk. These are strongly robust to market, size and value risk. The inclusion of a momentum factor partially explains some of the liquidity premia but they remain statistically significant. However, during the crisis period a long liquidity risk strategy experiences significantly negative alphas.
Automation and Irish towns: who's most at risk?
(Spatial and Regional Economics Research Centre, University College Cork, 2019) Crowley, Frank; Doran, Justin
Future automation and artificial intelligence technologies are expected to have a major impact on the labour market. Despite the growing literature in the area of automation and the risk it poses to employment, there is very little analysis which considers the sub-national geographical implications of automation risk. This paper makes a number of significant contributions to the existing nascent field of regional differences in the spatial distribution of the job risk of automation. Firstly, we deploy the automation risk methodology developed by Frey and Osborne (2017) at a national level using occupational and sector data and apply a novel regionalisation disaggregation method to identify the proportion of jobs at risk of automation across the 200 towns of Ireland, which have a population of 1,500 or more using data from the 2016 census. This provides imputed values of automation risk across Irish towns. Secondly, we employ an economic geography framework to examine what types of local place characteristics are most likely to be associated with high risk towns while also considering whether the automation risk of towns has a spatial pattern across the Irish urban landscape. We find that the automation risk of towns is mainly explained by population differences, education levels, age demographics, the proportion of creative occupations in the town, town size and differences in the types of industries across towns. The impact of automation in Ireland is going to be felt far and wide, with two out of every five jobs at high risk of automation. The analysis found that many at high risk towns have at low risk nearby towns and many at low risk towns have at high risk neighbours. The analysis also found that there are also some concentrations of at lower risk towns and separately, concentrations of at higher risk towns. Our results suggest that the pattern of job risk from automation across Ireland demands policy that is not one size fits all, rather a localised, place-based, bottom up approach to policy intervention.
Becoming a CEO: an exploration of the theory and practice of effective organisational leadership
(University College Cork, 2012-10) O'Keeffe, Niall; Doyle, Eleanor; Fanning, Connell
This Thesis is an exploration of potential enhancement in effectiveness, personally, professionally and organisationally through the use of Theory as an Apparatus of Thought. Enhanced effectiveness was sought by the practitioner (Subject), while in transition to becoming Chief Executive of his organization. The introduction outlines the content and the structure of the University College Cork DBA. Essay One outlines what Theory is, what Adult Mental Development is and an exploration of Theories held in the Authors past professional practice. Immunity to change is also reflected on. Essay Two looks at the construct of the key Theories used in the Thesis. Prof. Robert Kegan’s Theory of Adult Mental Development was used to aid the generation of insight. The other key Theories used were The Theory of The Business, Theory of the Co‐operative and a Theory of Organisational Leadership. Essay Three explores the application of the key Theories in a professional setting. The findings of the Thesis were that the subject was capable of dealing with increased environmental complexity and uncertainty by using Theory as an Apparatus of Thought, which in turn enhanced personal, professional and organisational effectiveness. This was achieved by becoming more aware of the Theories held by the practitioner, the experiences from the application of those Theories, which then led to greater insight. The author also found that a detailed understanding of the Theory of the Business and a Theory of Leadership would support any new CEO in the challenging early part of their tenure.
Benchmarking UK mutual fund performance: the random portfolio experiment
(2015) Clare, Andrew; O'Sullivan, Niall; Sherman, Meadhbh
We formally test the age-old question of whether professionally managed equity funds outperform portfolios of stocks selected at random, also known as ‘dartboard’ or ‘monkey’ portfolios. We examine the case of UK equity mutual funds between 1980 and 2011. We employ alpha and the t-statistic of alpha as performance measures from CAPM, Fama-French and Carhart factor models. We find that around 5% to 25% of funds across alternative performance measures and models yield abnormal returns beyond that which can be explained by random chance or luck in performance. The t-statistic of alpha indicates a slightly higher percentage of skilful funds compared to alpha, most likely for statistical reasons around short-lived funds. The degree of skilful performance among managed funds is higher when evaluated by a single factor CAPM or Fama and French three factor alpha but a Carhart four factor model explains much of this performance..
Bonus incentives and team effort levels: Evidence from the “Field”
(John Wiley & Sons, Inc., 2020-05-22) Butler, Robert; Lenten, Liam J. A.; Massey, Patrick
This study explores the effect of bonus incentive mechanisms with a focus on how such a scheme influences aggregate production levels of teams of workers, specifically. We identify this using data from a highly competitive setting in professional sport, which involves a unique tournament design rule in an elite European rugby competition. The modelling results demonstrate qualified evidence that introducing bonuses to encourage teams to score via the most‐difficult, highest‐reward mode, incentivizes teams to increase effort to earn the bonus, and without reducing production after the bonus is achieved.
Borderline personality disorder: resource utilisation costs in Ireland
(Cambridge University Press (CUP), 2018-07-16) Bourke, Jane; Murphy, Aileen; Flynn, Daniel; Kells, Mary; Joyce, Mary; Hurley, Justin
Objectives: Borderline personality disorder (BPD) is characterised by recurring crises, hospitalisations, self-harm, suicide attempts, addictions, episodes of depression, anxiety and aggression and lost productivity. The objective of this study is to determine the use of direct health care resources by persons with BPD in Ireland and the corresponding costs. Methods: This prevalence-based micro-costing study was undertaken on a sample of 196 individuals with BPD attending publicly funded mental health services in Ireland. All health care costs were assessed using a resource utilisation questionnaire completed by mental health practitioners. A probabilistic sensitivity analysis, using a Monte Carlo simulation, was performed to examine uncertainty. Results: Total direct healthcare cost per individual was €10 844 annually (ranging from 5228 to 20 609). Based on a prevalence of 1% and an adult population (18–65 years) of 2.87 million, we derived that there were 28 725 individuals with BPD in Ireland. Total yearly cost of illness was calculated to be up to €311.5 million. Conclusions: There is a dearth of data on health care resource use and costs of community mental health services in Ireland. The absence of this data is a considerable constraint to research and decision-making in the area of community mental health services. This paper contributes to the limited literature on resource use and costs in community mental health services in Ireland. The absence of productivity loss data (e.g. absenteeism and presenteeism), non-health care costs (e.g. addiction treatment), and indirect costs (e.g. informal care) from study participants is a limitation of this study.
Broadcasting demand for Formula One: Viewer preferences for outcome uncertainty in the United States
(Routledge, 2023-07-17) Fahy, Ronan; Butler, David; Butler, Robert
We explore the determinants of broadcasting demand for Formula One racing in the United States of America and pay specific attention to the relationship between outcome uncertainty and television viewership figures. Using implied probabilities derived from betting odds, we offer an approach to measuring outcome uncertainty that differs from those currently established in the Formula One broadcasting demand literature. We do not find any evidence to support the uncertainty of outcome hypothesis. On the contrary, viewers display a preference for less closely contested races. We find that scheduling and accessibility to live races are important determinants of viewership. Our results have practical implications and can guide the sport's administrators and television broadcasters seeking to understand a growing national market for F1 broadcasting.

Browse

Browsing Economics by Title

Results Per Page

Sort Options