•  
  •  
 

Document Type

Article

Abstract

The National Hockey League (NHL) is in serious financial trouble. More than half of the 30 teams lost money during the 2002-03 season. Player salaries have increased dramatically over the last decade and payroll costs account for the majority of total operating costs. This paper analyzes how team payroll affects team performance. Linear Regression analysis is used to determine the effect of payroll on performance. A Granger Causality test is performed using payroll and performance data from the 1998-99 to 2003-04 seasons. No conclusive evidence is found that supports the common belief that payroll can be used to predict a team’s success.

Publication Date

Spring 2004

Journal Title

Major Themes in Economics

Volume

6

Issue

1

First Page

23

Last Page

36

Copyright

©2004 by Major Themes in Economics

Language

en

File Format

application/pdf

Included in

Economics Commons

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.