{"id":13214,"date":"2021-07-10T01:01:00","date_gmt":"2021-07-10T00:01:00","guid":{"rendered":"https:\/\/www.economicsobservatory.com\/?post_type=question&#038;p=13214"},"modified":"2021-07-09T17:28:12","modified_gmt":"2021-07-09T16:28:12","slug":"update-iv-is-football-coming-home","status":"publish","type":"question","link":"https:\/\/www.economicsobservatory.com\/test\/update-iv-is-football-coming-home","title":{"rendered":"Update IV: Is football coming home?"},"content":{"rendered":"\n<p>The European Championships Final is England against Italy, with England enjoying the home advantage. Playing at Wembley \u2013 England\u2019s home ground \u2013 does matter \u2013 the Three Lions\u2019 probability of winning on neutral territory would be 33% (Italy\u2019s 41%), but in London it\u2019s 40%, compared with Italy\u2019s 33% (see Table 1).<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Table 1: Euro 2020 chances, by location<\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Outcome<\/strong><\/td><td><strong>London<\/strong><\/td><td><strong>Rome<\/strong><\/td><td><strong>Neutral ground<\/strong><\/td><\/tr><tr><td>England win<\/td><td>40%<\/td><td>25%<\/td><td>32.5%<\/td><\/tr><tr><td>Italy win<\/td><td>33%<\/td><td>49%<\/td><td>41%<\/td><\/tr><tr><td>Draw*<\/td><td>28%<\/td><td>26%<\/td><td>27%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h5 class=\"wp-block-heading\">*Leading to penalties<br>Source: Author\u2019s calculations<\/h5>\n\n\n\n<p>These probabilities are a little low as they allow for a draw to occur (which would then mean going to penalties). They are calculated using our Scorecasting model, which in turn is based on Elo ratings. Italy have an Elo rating of 1,421, and England 1,405. The <a href=\"https:\/\/en.wikipedia.org\/wiki\/Elo_rating_system\">Elo rating system<\/a> can be interpreted as a probability of each team winning the game but assumes a neutral venue. Under this system, there is a 52% chance that Italy win.<\/p>\n\n\n\n<p>Our model then adjusts for home advantage by factoring in historically how much more often teams win when they play at home, given the Elo ratings of the teams competing.<\/p>\n\n\n\n<p>Looking at past performance can also give clues to how the match will pan out. But the historical record is quite sparse, as the two nations haven\u2019t competed all that much \u2013 just 27 times, with England winning eight, nine draws (one draw in 2012 going to penalties), and Italy winning ten (11 including the 2012 penalty shootout). England have scored 33 goals to Italy\u2019s 31.<\/p>\n\n\n\n<p>These have been tight encounters over the years. Also, most of the England wins were in the early days, pre-1966 (W4 D4 L0). Since 1966 there have been just four wins for England, and only one of those (1977) in a competitive match \u2013 a World Cup qualifier. In World Cup and European Championship matches, England have won once, there have been two draws (including 2012), while Italy have come out on top five times.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Figure 1: Elo rating history for England (red) and Italy (blue) since 1900<\/h4>\n\n\n<section class=\"blocks__chart\">\n    <div id=\"chatEmbed304870\" class=\"blocks__chart-svg\"><\/div>\n\n    <script>\n        var spec = {\"$schema\":\"https:\\\/\\\/vega.github.io\\\/schema\\\/vega-lite\\\/v5.json\",\"description\":\"E36 C1 Elo\",\"data\":{\"url\":\"https:\\\/\\\/raw.githubusercontent.com\\\/RDeconomist\\\/observatory\\\/main\\\/E36_C1.csv\"},\"height\":300,\"width\":450,\"mark\":\"line\",\"encoding\":{\"x\":{\"field\":\"Date\",\"type\":\"temporal\",\"title\":\"\"},\"y\":{\"field\":\"Value\",\"type\":\"quantitative\",\"title\":\"Elo rating\",\"sort\":[],\"scale\":{\"domain\":[800,1500]}},\"color\":{\"field\":\"Team\",\"type\":\"nominal\",\"sort\":[],\"scale\":{\"range\":[\"#e6224b\",\"#0063af\"]}},\"tooltip\":[{\"field\":\"Date\",\"type\":\"temporal\",\"timeUnit\":\"year\",\"title\":\"Year\"},{\"field\":\"Value\",\"type\":\"quantitative\",\"title\":\"Elo rating\"},{\"field\":\"Team\"}]}};\n        var view = new vega.View(vega.parse(spec), {\n            responsive: true,\n            renderer: \"canvas\", \/\/ renderer (canvas or svg)\n            container: \"#chatEmbed304870\", \/\/ parent DOM container\n            hover: true \/\/ enable hover processing\n        });\n        view.run();\n\n        vegaEmbed('#chatEmbed304870', spec);\n    <\/script>\n<\/section>\n\n\n<h5 class=\"wp-block-heading\">Source: <a href=\"https:\/\/www.eloratings.net\/\">World Football Elo ratings<\/a><\/h5>\n\n\n\n<p>The Elo rating history, shown in Figure 1, suggests that, by and large England and Italy have been fairly evenly matched, with the exception of the 1930s when Italy won two World Cups, and the 1980s and 1990s when <em>gli Azzurri<\/em> were a dominant team.<\/p>\n\n\n\n<p>With home advantage factored in, England are expected to score 1.25 goals, and Italy 1.1. As such, a 1-1 draw is the most likely outcome at full time (13%). England to win 1-0 has 12% chance of happening and Italy to win 1-0 has an 11% chance. These are fine margins, and there\u2019s a 78% chance that each team scores at most two goals \u2013 it\u2019s not likely to be a high-scoring encounter. There\u2019s only about a 1% chance that both teams score more than two goals.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Table 2: Overall records<\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\u00a0<\/td><td><strong>In England<\/strong><\/td><td><strong>Overall<\/strong><\/td><\/tr><tr><td>Played<\/td><td>13<\/td><td>27<\/td><\/tr><tr><td>England wins<\/td><td>6<\/td><td>8<\/td><\/tr><tr><td>Draw<\/td><td>3<\/td><td>9<\/td><\/tr><tr><td>Italy wins<\/td><td>4<\/td><td>10<\/td><\/tr><tr><td>England goals<\/td><td>19<\/td><td>33<\/td><\/tr><tr><td>Italy goals<\/td><td>14<\/td><td>31<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Returning to the outcome probabilities, there is the likelihood of a draw, which after extra time means penalties. Here, Elo ratings can tell us something. Faced with the prospect of penalties, evidence suggests the <a href=\"https:\/\/www.sciencedirect.com\/science\/article\/pii\/S2214804320300240\">better team usually wins<\/a>, and so England\u2019s rating of 1,405 and Italy\u2019s rating of 1,421 means that England\u2019s probability of winning is 48% and Italy\u2019s is 52%.<\/p>\n\n\n\n<p>To get to an outright probability, assume that 48% of draws turn into England wins, 52% of draws into Italy wins, so that we scale up 40% and 33% (from Table 1) to get that the probability England wins is 53%.<\/p>\n\n\n\n<p>It just might be coming home!<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Where can I find out more?<\/h3>\n\n\n\n<ul><li><a href=\"https:\/\/jjreade.medium.com\/who-will-win-euro-2020-c55b11f29da1\" rel=\"noreferrer noopener\" target=\"_blank\">The Scorecasting Economists\u2019 Euro 2020 Forecasts in full<\/a>: Analysis by James Reade.<\/li><li><a href=\"https:\/\/www.r-bloggers.com\/2021\/06\/hybrid-machine-learning-forecasts-for-the-uefa-euro-2020\/\" rel=\"noreferrer noopener\" target=\"_blank\">Hybrid machine learning forecasts for the UEFA Euro 2020<\/a>: An alternative Euro 2020 forecasting model by Achim Zeileis (see here for\u00a0<a href=\"https:\/\/www.r-bloggers.com\/2018\/07\/evaluation-of-the-2018-fifa-world-cup-forecast\/\" rel=\"noreferrer noopener\" target=\"_blank\">2018<\/a>,\u00a0<a href=\"https:\/\/www.r-bloggers.com\/2016\/06\/update-predictive-bookmaker-consensus-model-for-the-uefa-euro-2016\/\" rel=\"noreferrer noopener\" target=\"_blank\">2016<\/a>\u00a0and\u00a0<a href=\"https:\/\/doi.org\/10.1016\/j.ijforecast.2009.10.001\" rel=\"noreferrer noopener\" target=\"_blank\">2008<\/a>\u00a0forecasts of Achim\u2019s model).<\/li><li><a href=\"https:\/\/doi.org\/10.1016\/j.euroecorev.2017.09.006\" rel=\"noreferrer noopener\" target=\"_blank\">First in first win: Evidence on schedule effects in round-robin tournaments in mega-events<\/a>: Evidence on scheduling effects in major football tournaments by Alex Krumer.<\/li><li><a href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=3668183\" rel=\"noreferrer noopener\" target=\"_blank\">Causal effects of an absent crowd on performances and refereeing decisions during Covid-19<\/a>: A study of home advantage and the impact of the crowd by the authors of this article and colleagues.<\/li><li><a href=\"https:\/\/psyarxiv.com\/qjp27\/\" rel=\"noreferrer noopener\" target=\"_blank\">The Cauldron Has Cooled Down: A Systematic Literature Review on COVID-19, Ghost Games, and Home Advantage in Football from a Behavioral Science Perspective<\/a>: A review of the research evidence by Michael Christian Leitner, Frank Daumann, Florian Follert and Fabio Richlan.<\/li><li><a href=\"https:\/\/www.niesr.ac.uk\/publications\/football-matter-life-and-death-%E2%80%93-or-it-more-important\" rel=\"noreferrer noopener\" target=\"_blank\">Is football a matter of life and death \u2013 or is it more important than that?<\/a>: A study of the happiness effects (and importance) of football by Peter Dolton and George MacKerron.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Who are experts on this question?<\/h3>\n\n\n\n<ul><li><a href=\"https:\/\/sites.google.com\/site\/alexkrumerdoc\/\" rel=\"noreferrer noopener\" target=\"_blank\">Alex Krumer<\/a>, Molde University College<\/li><li><a href=\"https:\/\/sites.google.com\/site\/jjamesreade\/\" rel=\"noreferrer noopener\" target=\"_blank\">James Reade<\/a>, University of Reading<\/li><li><a href=\"https:\/\/www.carlsingletoneconomics.com\/\" rel=\"noreferrer noopener\" target=\"_blank\">Carl Singleton<\/a>, University of Reading<\/li><\/ul>\n\n\n\n<h5 class=\"wp-block-heading\">Author: James Reade<\/h5>\n\n\n\n<h5 class=\"wp-block-heading\">Editor's note:\u00a0This is an update on three previous Economics Observatory articles, published on \u00a0<a href=\"https:\/\/www.economicsobservatory.com\/is-football-coming-home\" rel=\"noreferrer noopener\" target=\"_blank\">11 June<\/a>, \u00a0<a href=\"https:\/\/www.economicsobservatory.com\/update-is-football-coming-home\" rel=\"noreferrer noopener\" target=\"_blank\">24 June<\/a>,\u00a0<a href=\"https:\/\/www.economicsobservatory.com\/update-ii-is-football-coming-home\" target=\"_blank\" rel=\"noreferrer noopener\">30 June<\/a> and <a href=\"https:\/\/www.economicsobservatory.com\/update-iii-is-football-coming-home\">6 July 2021<\/a>.<\/h5>\n\n\n\n<h6 class=\"wp-block-heading\">Photo by cchana on Flickr<\/h6>\n","protected":false},"featured_media":13216,"template":"","categories":[231,228,493],"tags":[605,604,671,743,674],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Update IV: Is football coming home? - Economics Observatory<\/title>\n<meta name=\"description\" content=\"On Sunday night, England will play their first major men\u2019s final in 55 years. 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