Regulators and Redskins Bentley Coffey, Patrick A. McLaughlin, Robert D. Tollison LAURA AVINO MARCH 10, 2016 Objective of the Study To determine if the performance of the Washington Redskins has any impact on federal government activity Since the government employees in Washington, DC can be sports fans just like anyone else, do the Redskins’ wins or losses influence the employees’ behavior at work? Conflicting Theories – Hypothesis #1 The researchers had two conflicting theories about whether the Redskins’ performance would increase or decrease government activity Hypothesis 1: Government employees do not earn as much as private sector employees, but this difference in wages is made up for by the fact that they get value from their ability to exercise power and influence, as well as their enjoyment of the local amenities The theory is when the Redskins are winning, the government employees get more value from this “amenity” and need less compensation in other forms. Therefore, they feel less of a need to exert influence over regulations, leading to a decrease in the amount of government activity. Conflicting Theories – Hypothesis #2 Hypothesis 2: Government employees want to maximize their power, they do so by working with others to enact regulations When workers are happier it is easier for them to interact and work together to come to agreements The theory is when the Redskins are winning, the government employees are happier, therefore making them more likely to interact to get work done, leading to an increase in the amount of government activity Data Used The page count of the Federal Register was used to measure government activity ◦ Available monthly since 1945 and daily since 1994 ◦ Contains records of all daily activity of the federal government, including regulations, executive orders, etc. The performance of the Redskins was available for each game since 1932 Data was also gathered on other political variables that could potentially impact the results ◦ Party controlling the executive branch, percentage of congressional seats occupied by Democrats, and quarterly cabinet turnover rates Quarterly and Annual Statistics Pages of the Federal Register and Redskins winning percentage 1945-2010 The number of pages in the Federal Register increased drastically starting in the 1970s Concerns with the Federal Register Data The period being evaluated coincided with a huge growth in Federal Register pages The time series was non-stationary ◦ Data does not have the same properties (mean, variance) over time Researchers needed a way to account for this otherwise the results would not be meaningful RGDP and Federal Register Pages RGDP and Federal Register pages both increased significantly over the same time period The ratio of Federal Register pages to RGDP proved to be stationary Linear Regression Model Error term Page count of the Federal Register Winning percentage of the Redskins Control variable, captures the trend of FR pages increasing over time with the size of the economy Results for pages of the Federal Register Federal Register pages are positively correlated to the winning percentage of the Redskins and the results are statistically significant. RGDP is also very significantly positive, due to the fact that RGDP and the size of the Federal Register have both increased over time. Adding in the other political variables did not significantly change the results Results for ratio of FR pages to RGDP Ratio of Federal Register pages to RGDP is still positively correlated to the winning percentage of the Redskins and the results are statistically significant R-squared is much smaller when looking at the ratio, showing that the Redskins’ record only plays a small part in impacting the Federal Register pages Other Considerations Between 1970-1980 the number of pages in the Federal Register increased substantially, and the Redskins also had several good seasons ◦ Could lead to concerns that the results are skewed based on this period of time ◦ However, the researchers tested pulling out these records from the model and their results still held true The researchers also tried to see if these results were similar with congressional behavior, using bills introduced in the House and Senate ◦ Results showed the Redskins’ performance did not have any impact ◦ Congressional members would likely remain loyal to their home teams even though they are working in Washington, DC Other Considerations The researchers also looked at the other professional sports teams in the DC area to see if their performance had any impact on government activity ◦ Wizards (basketball), Nationals (baseball), Capitals (hockey) ◦ The Wizards’ performance was also significantly positively related to government activity ◦ The Nationals have not been in DC long enough (only since 2002) to determine meaningful results, but initial results were positive ◦ However, the Capitals’ performance was significantly negatively related to government activity, which the researchers had no explanation for Conclusion Regression results showed that the Redskins’ performance increased government activity in a statistically significant way This seems to prove the researchers’ Hypothesis #2 which said happier government employees will be more willing to work together, leading to more regulations being created Would these results hold true for all factors that make people happier, such as nice weather?
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