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The Global Economic Impact of Politicians: Evidence from an International Survey RCT

Author

Listed:
  • Dorine Boumans
  • Klaus Gründler
  • Niklas Potrafke
  • Fabian Ruthardt

Abstract

We use the US presidential election on 3 November 2020 to examine how the US president influences economic expectations of international experts. We design a large-scale RCT among 843 experts working in 107 countries, asking about their expectations regarding GDP growth, unemployment, inflation, and trade in their country. The sample is split randomly in two subsamples. Half of the participants were surveyed closely before the election, the other half directly after Joe Biden had been called US president. Our results show that the election of Joe Biden increased growth expectations of international experts by 0.98 percentage points for the year 2021. We also find that (i) treatment effects materialize only in the short-run and (ii) experts’ uncertainty increased after the election. Our results suggest that exceptional politicians influence global economic outcomes.

Suggested Citation

  • Dorine Boumans & Klaus Gründler & Niklas Potrafke & Fabian Ruthardt, 2021. "The Global Economic Impact of Politicians: Evidence from an International Survey RCT," CESifo Working Paper Series 8833, CESifo.
    • Handle: RePEc:ces:ceswps:_8833
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    Cited by:

    1. Laura Arnemann & Kai A Konrad & Niklas Potrafke, 2021. "Collective memories on the 2010 European debt crisis," European Union Politics, , vol. 22(4), pages 762-784, December.
    2. Dodge Cahan & Niklas Potrafke, 2021. "The Democrat-Republican presidential growth gap and the partisan balance of the state governments," Public Choice, Springer, vol. 189(3), pages 577-601, December.
    3. Lena Dräger & Klaus Gründler & Niklas Potrafke, 2022. "Political Shocks and Inflation Expectations: Evidence from the 2022 Russian Invasion of Ukraine," ifo Working Paper Series 371, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    4. Philipp Hauber & Stormy-Annika Mildner & Galina Kolev & Jürgen Matthes & Sonja Peterson & Reimund Schwarze & Christiane Lemke & Martin, Thunert & Laura von Daniels & Josef Braml & Johannes Varwick & D, 2021. "The US under Joe Biden: U-Turn or “America First Light”?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 74(01), pages 03-37, January.

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    More about this item

    Keywords

    US presidential elections; politicians; economic expectations; economic experts; Randomized Controlled Trial; causal inference;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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