What Do Outside Experts Bring To A Committee? Evidence From The Bank of England
AbstractWe test whether outside experts have information not available to insiders by using the voting record of the Bank of England's Monetary Policy Committee. Members with more private information should vote more often against conventional wisdom, which we measure as the average belief of market economists about future interest rates. We nd evidence that external members indeed have information not available to internals, but also use a quasi-natural experiment to show they may exaggerate their expertise to obtain reappointment. This implies that an optimal committee, even outside monetary policy, should potentially include outsiders, but needs to manage career concerns.
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Bibliographic InfoPaper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 946.
Date of creation: 2010
Date of revision:
Expert Behavior ; Committees ; Monetary Policy JEL Classification: D70 ; E52;
Other versions of this item:
- Stephen Eliot Hansen & Michael McMahon, 2010. "What Do Outside Experts Bring To A Committee? Evidence From The Bank of England," Working Papers 512, Barcelona Graduate School of Economics.
- Stephen Eliot Hansen & Michael McMahon, 2010. "What do outside experts bring to a committee? Evidence from the Bank of England," Economics Working Papers 1238, Department of Economics and Business, Universitat Pompeu Fabra.
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-23 (All new papers)
- NEP-CBA-2010-10-23 (Central Banking)
- NEP-CTA-2010-10-23 (Contract Theory & Applications)
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