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Business as usual: Politicians with business experience, government finances, and policy outcomes

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  • Beach, Brian
  • Jones, Daniel B.

Abstract

Are government finances and policy outcomes different under politicians with business experience? We study California city councils and implement a regression discontinuity strategy to provide causal evidence on this issue. Ultimately, we find no evidence that the election of a candidate with business experience impacts city expenditures, revenues, unemployment rates, and other outcomes. Future vote shares for candidates with business experience are also unaffected, which suggests that these politicians are not having an impact that is observed to voters but unobserved in our data.

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  • Beach, Brian & Jones, Daniel B., 2016. "Business as usual: Politicians with business experience, government finances, and policy outcomes," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PA), pages 292-307.
    • Handle: RePEc:eee:jeborg:v:131:y:2016:i:pa:p:292-307
    DOI: 10.1016/j.jebo.2016.09.010
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    Cited by:

    1. Luis Diaz-Serrano & Giorgos Kallis, 2022. "Political leaders with professional background in business and climate outcomes," Climatic Change, Springer, vol. 172(1), pages 1-20, May.
    2. Bordignon, Massimo & Gamalerio, Matteo & Turati, Gilberto, 2020. "Manager or professional politician? Local fiscal autonomy and the skills of elected officials," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    3. Scharfenkamp, Katrin, 2018. "The effects of bridging business and politics – A survival analysis of German Federal ministers," European Journal of Political Economy, Elsevier, vol. 55(C), pages 433-454.
    4. Makarin, Alexey & Piqué, Ricardo & Aragón, Fernando, 2020. "National or sub-national parties: Does party geographic scope matter?," Journal of Development Economics, Elsevier, vol. 146(C).
    5. Shi, Ying & Singleton, John D., 2019. "Expertise and Independence on Governing Boards: Evidence from School Districts," IZA Discussion Papers 12414, Institute of Labor Economics (IZA).
    6. Brian Beach & Daniel B. Jones & Tate Twinam & Randall Walsh, 2018. "Minority Representation in Local Government," NBER Working Papers 25192, National Bureau of Economic Research, Inc.

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