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Do Businessmen Make Good Governors?

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  • Florian Neumeier

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Abstract

This paper empirically evaluates the economic performance of U.S. state governors who came to the position from a business background (CEO governors), focusing on income growth, unemployment, private investment, and income inequality. Methodologically, I apply a matching method to account for the endogeneity of political selection. I find that the tenures of CEO governors are associated with a 0.6 percentage points higher annual income growth rate, a 0.4 pp higher growth rate of the private capital stock, and a 0.6 percentage points lower unemployment rate than are the tenures of non-CEO governors. Income inequality decreases when CEO governors hold office.

Suggested Citation

  • Florian Neumeier, 2016. "Do Businessmen Make Good Governors?," ifo Working Paper Series 230, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
  • Handle: RePEc:ces:ifowps:_230
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    Cited by:

    1. Niklas Potrafke, 2017. "Government Ideology and Economic Policy-Making in the United States," CESifo Working Paper Series 6444, CESifo Group Munich.
    2. repec:kap:pubcho:v:174:y:2018:i:1:d:10.1007_s11127-017-0491-3 is not listed on IDEAS

    More about this item

    Keywords

    U.S. Governors; economic growth; unemployment; income inequality; businessmen; entropy balancing.;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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