Herding Among Bureaucrats
AbstractThe herding of expert opinions is often rationalized as the outcome of social learning. However,experts are typically individuals with career concerns. As a result, herding can also arise from the fear of opposing consensus opinion and the potential career consequences of being wrong. We empirically test for social learning and career concerns using novel data on bureaucrats' expert opinions over whether to publicly provide health insurance for pharmaceuticals. We and robust evidence that career concerns are an important source of herd behavior in these policy choices. Our findings have implications for the delegation of policy-making to experts.
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Bibliographic InfoPaper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 1158.
Length: 44 pages
Date of creation: 2012
Date of revision:
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Postal: Department of Economics, The University of Melbourne, 5th Floor, Economics and Commerce Building, Victoria, 3010, Australia
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More information through EDIRC
D80; H77; I18;
Other versions of this item:
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
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- Kyle, Margaret, 2006. "The Role of Firm Characteristics in Pharmaceutical Product Launches," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
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