Abstract and Keywords
This article investigates the theory and application of event studies in sports. It briefly explains what event analysis is, when it is appropriate, and what it does. It also presents a brief history of event analysis in the finance literature. It then discusses how to perform an event analysis. It presents both the standard methodology from the finance literature and an approach that sports economists are likely to find more intuitively appealing. Many papers that have applied event analysis to the realm of sports are summarized. An event analysis requires a clearly identified incident that takes place at a well-identified moment in time. It has illustrated that event analysis is a potentially valuable econometric tool. However, it has not been extensively employed in sports settings and, when used, it has often been imperfectly applied.
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