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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

Related research

Keywords: Central bank governors Central bank independence;

References

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Citations

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Cited by:
  1. Axel Dreher & Stefan Voigt, 2008. "Does Membership in International Organizations Increase Governments’ Credibility? Testing the Effects of Delegating Powers," KOF Working papers 08-193, KOF Swiss Economic Institute, ETH Zurich.
  2. Christopher, Gandrud, 2011. "Competing risks analysis and deposit insurance governance convergence," MPRA Paper 36087, University Library of Munich, Germany.

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