Party Affiliation Rather than Former Occupation: The Background of Central Bank Governors and its Effect on Monetary Policy

Neuenkirch, Matthias; Neumeier, Florian

doi:10.2139/ssrn.2303629

Cited by 26 publications

(18 citation statements)

References 47 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…4 2 Several empirical economic studies applying matching estimators are briefly described in Caliendo and Kopeinig (2008). 3 Matching approaches are applied in similar contexts by Neuenkirch and Tillmann (2013) as well as by Malmendier and Tate (2009). Neuenkirch and Tillmann (2013) study the influence of central bankers receiving top grades by the international financial press on a country's output and inflation.…”

Section: Introductionmentioning

confidence: 99%

“…3 Matching approaches are applied in similar contexts by Neuenkirch and Tillmann (2013) as well as by Malmendier and Tate (2009). Neuenkirch and Tillmann (2013) study the influence of central bankers receiving top grades by the international financial press on a country's output and inflation. Malmendier and Tate (2009) analyze the impact of award-winning CEOs on firm performance.…”

Section: Introductionmentioning

confidence: 99%

“…Moreover, the extent of income inequality within a state decreases 5 Another strand of the literature investigates the association between characteristics of central bankers and their monetary policy stance. See, for instance, Neuenkirch and Neumeier (2015) and Göhlmann and Vaubel (2007). 6 An exception is the study by Hayo and Neumeier (2013), which examines the influence of political leaders' social status on public deficits in a sample of OECD countries using the social status of leaders' parents as an instrument.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Do Businessmen Make Good Governors?

Neumeier

2015

SSRN Journal

Self Cite

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper empirically evaluates the economic performance of U.S. state governors who came to the position from a business background (CEO governors), focusing on the growth rate of real personal income per capita, unemployment rate, and income inequality.Methodologically, we apply a matching method to account for the endogeneity of political selection. Using entropy balancing, we identify credible counterfactuals for CEO governors, that is, governors without a business background who took office under similar economic and fiscal situations. We find, first, that businesspeople tend to take office in times of economic and fiscal strain. Second, the tenures of CEO governors are associated with a 0.6 percentage points higher annual income growth rate and a 0.6 percentage points lower unemployment rate than are the tenures of non-CEO governors. Also, state-level income inequality decreases when CEO governors hold office, indicating that low-income households benefit from the economic upswing. Third, the positive effect of having a CEO governor increases with time in office. Fourth, Republican CEO governors perform slightly better than their Democratic colleagues.

show abstract

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Do Businessmen Make Good Governors?

Neumeier

2015

SSRN Journal

Self Cite

View full text Add to dashboard Cite

show abstract

“…Brech and Potrafke (2014) Neuenkirch and Neumeier (2013), however, do not find significant effects of the professional background of central bank governors on interest rates. They conclude that party affiliation rather than former occupation affects monetary policy.…”

Section: (B) Political Ideologymentioning

confidence: 73%

Do Development Minister Characteristics Affect Aid Giving?

Fuchs

Richert

2015

SSRN Journal

View full text Add to dashboard Cite

Abstract:Over 300 government members have had the main responsibility for international development cooperation in 23 member countries of the OECD's Development Assistance Committee since the organization started reporting detailed Official Development Assistance (ODA) data in 1967.Understanding their role in foreign aid giving is crucial since their decisions might directly impact aid effectiveness and thus economic development on the ground. Our study examines whether development ministers' personal characteristics influence aid budgets and aid quality. To this end, we create a novel database on development ministers' gender, political ideology, prior professional experience in development cooperation, education in economics, and time in office over the 1967-2012 period. Results from fixed-effects panel regressions show that some of the personal characteristics of development ministers matter. Most notably, we find that more experienced ministers with respect to their time in office obtain larger aid budgets. Moreover, there is evidence that female ministers as well as officeholders with prior professional experience in development cooperation and a longer time in office provide higher-quality ODA.JEL classification: D78, F35, H11, O19

show abstract

“…Interestingly, they do not find differences across members' affiliations with respect to inflation and output responses. Neuenkirch and Neumeier (2013) use estimated instrument rules to explain differences across central bankers with different career backgrounds or party affiliations. They are able to show that party affiliation has more explanatory power than previous professional occupations.…”

Section: Related Literature and Our Contributionmentioning

confidence: 99%