Skidmore College Creative Matter Economics Student Theses and Capstone Projects Economics 2016 Analyzing Managerial Efficiency in Major League Baseball: A Sabermetric Approach Jebediah C. Clarke Skidmore College Follow this and additional works at: https://creativematter.skidmore.edu/econ_studt_schol Part of the Economics Commons Recommended Citation Clarke, Jebediah C., "Analyzing Managerial Efficiency in Major League Baseball: A Sabermetric Approach" (2016). Economics Student Theses and Capstone Projects. 18. https://creativematter.skidmore.edu/econ_studt_schol/18 This Thesis is brought to you for free and open access by the Economics at Creative Matter. It has been accepted for inclusion in Economics Student Theses and Capstone Projects by an authorized administrator of Creative Matter. For more information, please contact
[email protected]. Analyzing Managerial Efficiency in Major League Baseball: A Sabermetric Approach Jebediah C. Clarke A Thesis Submitted to Department of Economics Skidmore College In Partial Fulfillment of the Requirement for a B.A. Degree Thesis Advisor: Joerg Bibow May 3rd, 2016 Abstract Modern statistical analysis has allowed for teams to more accurately measure Major League Baseball player performance. However, other than tracing wins there are few ways to track the performance of on-field managers whose strategies, decisions, and expertise fundamentally influence the outcome of each game. I begin this paper by investigating and critiquing prior empirical analyses that have attempted to quantify the effect of managerial skill on team performance. Using Stochastic Frontier Analysis and data from the 2008-2015 MLB seasons, I expand on previous research by calculating managerial efficiency estimates while including control variables that better objectively measure player performance. I find that the least efficient managers achieve winning percentages that are around 80% of what is possible, given their players’ talent level.