Power vs. Precision: How Have the Determinants of PGA TOUR Golfers' Performance-Based Earnings Evolved Since the 1990's?

Abstract

This paper improves upon the methods for modelling the determinants of PGA TOUR golfers’ performance-based earnings by incorporating the most recent and accurate PGA TOUR statistics while controlling for year and individual fixed effects. Using a panel of golfers from the 2004 through 2011 PGA TOUR seasons, I find that a one standard deviation improvement in putting renders the average golfer 27 percent additional earnings; meanwhile, the same degree of improvement in driving distance offers only 14 percent more earnings. Even as PGA TOUR golf course yardages and driving distances continue to grow, this study shows that improved driving distance yields are no greater than those to scrambling, greens in regulation, or strokes gained-putting.