Economic leadership and growth

• 成果类型: Article
• 署名作者: Brown, Craig O.
• 署名单位: Purdue University System; Purdue University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2019.11.004
• 发表日期: 2020
• 页码: 298-333
• 关键词: Government leadership; Economics education; Economic growth; Policy anticipation; Government finance; Tax cuts

摘要

Economies governed by former economics students grow faster than economies governed by leaders with other education backgrounds; a result which is most evident for presidents. Faster growth (average growth) occurs during an economic leader's first year (entire tenure), primarily through investment. When focusing on close elections which quasi randomize economic leadership, I find a large effect that is robust controlling for a leader's advanced education. Investors seem to hasten their activity in anticipation of their economic leader's eventual reduction of the top personal income-tax rate. Overall, the findings suggest that economic leaders improve short-term growth through the anticipation of policy changes. (C) 2019 Elsevier B.V. All rights reserved.