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When is a central bank governor replaced? Evidence based on a new data set

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  • Dreher, Axel
  • Sturm, Jan-Egbert
  • Haan, Jakob de

Abstract

Using new data on the term in office of central bank governors for a large set of countries for 1970-2005, we estimate a model for the probability that a central bank governor is replaced before the end of his legal term in office. We formulate hypotheses based on the literature on the determinants of central bank independence that are tested using conditional logit models and the robustness approach of Sala-i-Martin (1997). We conclude that, apart from the share of the legal term in office that has elapsed, political and regime instability, the occurrence of elections, and the ratio of private credit to GDP increase the probability of a turnover.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Macroeconomics.

Volume (Year): 32 (2010)
Issue (Month): 3 (September)
Pages: 766-781

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Handle: RePEc:eee:jmacro:v:32:y:2010:i:3:p:766-781

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Web page: http://www.elsevier.com/locate/inca/622617

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Keywords: Central bank governors Central bank independence;

References

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Citations

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Cited by:
  1. Etienne Farvaque & Norimichi Matsueda, 2013. "Optimal Term Length for an Overconfident Central Banker," Discussion Paper Series 106, School of Economics, Kwansei Gakuin University, revised Jun 2013.
  2. Brito, Ricardo D., 2012. "Inflation targeting did make a difference in industrial countries' inflation and output growth," Insper Working Papers wpe_272, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
  3. Dreher, Axel & Voigt, Stefan, 2011. "Does membership in international organizations increase governments' credibility? Testing the effects of delegating powers," Journal of Comparative Economics, Elsevier, vol. 39(3), pages 326-348, September.
  4. Alexandru MINEA & Pascale COMBES MOTEL & Jean-Louis COMBES & Patrick VILLIEU, 2013. "Deforestation and Seigniorage in Developing Countries: A Tradeoff?," Working Papers 201322, CERDI.
  5. Cingolani, Luciana & Thomsson, Kaj & de Crombrugghe, Denis, 2013. "Minding Weber more than ever? The impacts of State Capacity and Bureaucratic Autonomy on development goals," MERIT Working Papers 052, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  6. Matthias Neuenkirch & Peter Tillmann, 2013. "Superstar Central Bankers," MAGKS Papers on Economics 201354, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  7. Aleš Bulíř & Martin Čihák & David-Jan Jansen, 2013. "What Drives Clarity of Central Bank Communication About Inflation?," Open Economies Review, Springer, vol. 24(1), pages 125-145, February.
  8. Christopher, Gandrud, 2011. "Competing risks analysis and deposit insurance governance convergence," MPRA Paper 36087, University Library of Munich, Germany.
  9. Berdiev, Aziz N. & Kim, Yoonbai & Chang, Chun Ping, 2012. "The political economy of exchange rate regimes in developed and developing countries," European Journal of Political Economy, Elsevier, vol. 28(1), pages 38-53.

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