Economic Leadership and Growth

76 Pages Posted: 3 Nov 2012 Last revised: 5 Mar 2018

Craig Brown

Northeastern University - D’Amore-McKim School of Business

Date Written: December 7, 2017

Abstract

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.

Keywords: Government Leadership, Economics Education, Economic Growth, Anticipation, Government Finance, Tax Cuts

JEL Classification: A20, E32, D72, H11, H24, H30, I26, O23

Suggested Citation

Brown, Craig O., Economic Leadership and Growth (December 7, 2017). Available at SSRN: https://ssrn.com/abstract=2169149 or http://dx.doi.org/10.2139/ssrn.2169149

Craig O. Brown (Contact Author)

Northeastern University - D’Amore-McKim School of Business ( email )

360 Huntington Ave.
Boston, MA 02115
United States

HOME PAGE: http://craigobrown.me

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