Efficiency Estimation Using the Stochastic Production Frontier Approach: Evidence from the National Rugby League

Abstract

The stochastic frontier production model methodology developed by Battese and Coelli (1992) and applied to American football by Hofler and Payne (1996) is applied to team pointscoring in the (Australasian) National Rugby League (NRL) competition, using performance-influencing and game-specific variables as inputs into the point scoring (production) process. Upon modelling two separate frontier models (home team point scoring, and visiting team point scoring) evidence is found to support previous findings of the existence of a homeground advantage (Richardson, 2000). Points scored by the opposition, successful goalkicking, scrums awarded to the visiting team, the home team's season performance and the home team's roster turnover from game to game were all found to be statistically significantly related to point scoring. The resulting efficiency estimates indicate that, on average, home teams score their points more efficiently than visiting teams, and both score points with high levels of efficiency.