Sunday, September 20, 2009
Tyler Cowen points me to this article from last spring about the profligacy of professional athletes. Here are numbers which seem constructed for the sake of plausibility more than anything else:
* By the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce. It shouldn't be that hard to track down a large number of former players and try and make the sample representative, and assess what their financial situation is. This looks like a "natural experiment" waiting to be mined for data (perhaps someone already has, if so, pointers in the comments welcome). Here's the part which shows time preference inclinations most starkly: Given all the pressures on a pro athlete's marriage, one safety valve might be the prenuptial agreement-something "very strongly" recommended by agent David Falk, who surged to prominence representing Michael Jordan (who did not have one). "The percentage of prenups amongst athletes is appreciably lower compared with nonathletes at the same economic level," says celebrity divorce lawyer Raoul Felder, who has represented the ex-wives of Patrick Ewing, Jason Kidd and Mike Tyson. Mutumbo as an exceptional case is informative, he was not recruited as a student athlete initially, and managed to complete a degree in linguistics and diplomacy at Georgetown (David Robinson, who scored a 1320 on the pre-recentered SAT and received a degree in math from the Naval Academy, is probably an even better example). Labels: Behavioral Economics |