MAXIMUM-LIKELIHOOD ESTIMATES OF RACEHORSE EARNINGS AND PROFITABILITY
| dc.creator | Vinzant, Patrick L. | |
| dc.creator | Neibergs, J. Shannon | |
| dc.date | 2017-04-01T14:03:31Z | |
| dc.date.accessioned | 2026-07-09T03:11:43Z | |
| dc.description | Thoroughbred racehorses are commonly characterized as unprofitable investments. Previous studies, grouping all racehorses together, estimate that over 80% of all racehorses in training fail to earn enough to recover the variable costs of training. However, these studies are not truly representative, because they fail to account for a number of factors affecting profitability. This study estimates expected purse earnings and profitability of claiming horses in Kentucky. Maximum-likelihood estimates of probability distribution parameters show that expected purse earnings follow an exponential distribution with a mean of $25,267. Profitability is best described by a Gamma distribution with a mean of $4,824. Of the 305 claims analyzed for profitability, 61% were profitable. The results indicate substantial financial risk associated with claiming race horses, but conclude that there are positive economic returns on average. | |
| dc.identifier | doi:10.22004/ag.econ.14682 | |
| dc.identifier | https://ageconsearch.umn.edu/record/14682/files/17010037.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/14682 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/528218 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/14682 | |
| dc.title | MAXIMUM-LIKELIHOOD ESTIMATES OF RACEHORSE EARNINGS AND PROFITABILITY | |
| dc.type | Text |