Forecasting leadership transitions around the world
We use popular non-parametric (CART, TreeNet) and parametric (logit) techniques to identify robust economic, demographic and political conditions that lead to shifts in control in the executive branch of government in 162 countries during the period 1960–2004. We find that institutional aspects of the political system, executive characteristics, demographic variables, economic growth, and economic trade variables are all very important for predicting leadership turnover in the following year. Financial crises are not robustly useful for this purpose, but a vulnerability to currency crises in times of low economic growth implies very high conditional probabilities of job losses for democratic leaders in non-election years. In-sample, TreeNet predicts 78% of leadership transition events correctly, compared to CART’s 70%, and TreeNet also generally achieves higher overall prediction accuracies than either CART or the logit model out-of-sample.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul J. Burke & Andrew Leigh, 2010.
"Do Output Contractions Trigger Democratic Change?,"
American Economic Journal: Macroeconomics,
American Economic Association, vol. 2(4), pages 124-57, October.
- Burke, Paul J. & Leigh, Andrew, 2010. "Do Output Contractions Trigger Democratic Change?," IZA Discussion Papers 4808, Institute for the Study of Labor (IZA).
- Paul J. Burke & Andrew Leigh, 2010. "Do output contractions trigger democratic change?," CEPR Discussion Papers 633, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Hadhek Zouhaier & Mohamed Karim KEFI, 2012. "Institutions and Economic Growth," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(7), pages 795-812, November.
- Nouriel Roubini & Paolo Manasse, 2005.
"Rules of Thumb for Sovereign Debt Crises,"
IMF Working Papers
05/42, International Monetary Fund.
- Roubini, Nouriel & Swagel, Phillip & Ozler, Sule & Alesina, Alberto, 1996.
"Political Instability and Economic Growth,"
4553024, Harvard University Department of Economics.
- Paul J Burke, 2011.
"Economic Growth and Political Survival,"
Departmental Working Papers
2011-06, The Australian National University, Arndt-Corden Department of Economics.
- Samuel W. Malone, 2011. "Sovereign indebtedness, default, and gambling for redemption," Oxford Economic Papers, Oxford University Press, vol. 63(2), pages 331-354, April.
- Friedman, Jerome H., 2002. "Stochastic gradient boosting," Computational Statistics & Data Analysis, Elsevier, vol. 38(4), pages 367-378, February.
- Ioannidis, Christos & Pasiouras, Fotios & Zopounidis, Constantin, 2010. "Assessing bank soundness with classification techniques," Omega, Elsevier, vol. 38(5), pages 345-357, October.
- Mohamed Karim KEFI & Hadhek Zouhaier, 2012. "Inequality and Economic Growth," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(8), pages 1013-1025, December.
- Campbell, James E., 2008. "Evaluating U.S. presidential election forecasts and forecasting equations," International Journal of Forecasting, Elsevier, vol. 24(2), pages 259-271.
- Alesina, Alberto, et al, 1996.
" Political Instability and Economic Growth,"
Journal of Economic Growth,
Springer, vol. 1(2), pages 189-211, June.
- VJeffrey A. Frankel, 2005. "Mundell-Fleming Lecture: Contractionary Currency Crashes in Developing Countries," IMF Staff Papers, Palgrave Macmillan, vol. 52(2), pages 149-192, September.
- Eduardo Borensztein & Ugo Panizza, 2008.
"The Costs of Sovereign Default,"
IMF Working Papers
08/238, International Monetary Fund.
- Carmen M. Reinhart, 2010. "This Time is Different Chartbook: Country Histories on Debt, Default, and Financial Crises," NBER Working Papers 15815, National Bureau of Economic Research, Inc.
- Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny, 1996.
"Law and Finance,"
NBER Working Papers
5661, National Bureau of Economic Research, Inc.
- La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert W., 1998. "Law and Finance," Scholarly Articles 3451310, Harvard University Department of Economics.
- Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, . "Law and Finance," Working Paper 19451, Harvard University OpenScholar.
- Rafael LaPorta & Florencio Lopez de-Silanes & Andrei Shleifer & Robert W. Vishny, 1996. "Law and Finance," Harvard Institute of Economic Research Working Papers 1768, Harvard - Institute of Economic Research.
- Adi Brender & Allan Drazen, 2008. "How Do Budget Deficits and Economic Growth Affect Reelection Prospects? Evidence from a Large Panel of Countries," American Economic Review, American Economic Association, vol. 98(5), pages 2203-20, December.
- Reinhart, Carmen & Kaminsky, Graciela, 1999.
"The twin crises: The causes of banking and balance of payments problems,"
14081, University Library of Munich, Germany.
- Carmen M. Reinhart & Graciela L. Kaminsky, 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments Problems," American Economic Review, American Economic Association, vol. 89(3), pages 473-500, June.
- Graciela L. Kaminsky & Carmen M. Reinhart, 1996. "The twin crises: the causes of banking and balance-of-payments problems," International Finance Discussion Papers 544, Board of Governors of the Federal Reserve System (U.S.).
- Roberto Chang, 2010. "Elections, Capital Flows, and Politico-economic Equilibria," American Economic Review, American Economic Association, vol. 100(4), pages 1759-77, September.
- Andrew Leigh, 2009.
"Does the World Economy Swing National Elections?,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 71(2), pages 163-181, 04.
- Fair, Ray C, 1978.
"The Effect of Economic Events on Votes for President,"
The Review of Economics and Statistics,
MIT Press, vol. 60(2), pages 159-73, May.
- Ray C. Fair, 1976. "The Effects of Economic Events on Votes for President," Cowles Foundation Discussion Papers 418, Cowles Foundation for Research in Economics, Yale University.
- Andrew Berg & Eduardo Borensztein & Catherine A. Pattillo, 2004.
"Assessing Early Warning Systems; How Have they Worked in Practice?,"
IMF Working Papers
04/52, International Monetary Fund.
- Andrew Berg & Eduardo Borensztein & Catherine Pattillo, 2005. "Assessing Early Warning Systems: How Have They Worked in Practice?," IMF Staff Papers, Palgrave Macmillan, vol. 52(3), pages 5.
- Simeon Djankov & Caralee McLiesh & Andrei Shleifer, 2005.
"Private Credit in 129 Countries,"
NBER Working Papers
11078, National Bureau of Economic Research, Inc.
- Deaton, A-S & Miller, R-I, 1995.
"International Commodity Prices, Macroeconomic Performance, and Politics in Sub-Saharan Africa,"
Princeton Studies in International Economics
79, International Economics Section, Departement of Economics Princeton University,.
- Deaton, Angus & Miller, Ron, 1996. "International Commodity Prices, Macroeconomic Performance and Politics in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 5(3), pages 99-191, October.
- Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2008. "Climate Change and Economic Growth: Evidence from the Last Half Century," NBER Working Papers 14132, National Bureau of Economic Research, Inc.
- Frankel, Jeffrey, 2005.
"Contractionary Currency Crashes In Developing Countries,"
Working Paper Series
rwp05-017, Harvard University, John F. Kennedy School of Government.
- Jeffrey A. Frankel, 2005. "Contractionary Currency Crashes in Developing Countries," NBER Working Papers 11508, National Bureau of Economic Research, Inc.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "This Time Is Different: Eight Centuries of Financial Folly," Economics Books, Princeton University Press, edition 1, volume 1, number 8973, April.
- Carmignani, Fabrizio, 2002. "New Evidence on the Politics and Economics of Multiparty Cabinets Duration," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(3), pages 249-79, August.
- Axel Schimmelpfennig & Nouriel Roubini & Paolo Manasse, 2003. "Predicting Sovereign Debt Crises," IMF Working Papers 03/221, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:eee:intfor:v:29:y:2013:i:4:p:575-591. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.