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Do countries falsify economic data strategically? Some evidence that they do

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  • Tomasz Kamil Michalski

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • Guillaume Stoltz

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

Abstract

We find evidence supporting the hypothesis that countries at times misreport their economic data in a strategic manner. Among those suspected are countries with fixed exchange rate regimes, high negative net foreign asset positions or negative current account balances, which corroborates the intuition developed with a simple economic model. We also find that countries with bad institutional quality rankings and those in Africa, Middle East, Eastern Europe and Latin America release economic data of questionable veracity. Our evidence calls for models with public signals to consider strategic misinformation and for establishing independent statistical agencies to assure the delivery of high quality economic data.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Tomasz Kamil Michalski & Guillaume Stoltz, 2010. "Do countries falsify economic data strategically? Some evidence that they do," Post-Print hal-00543490, HAL.
  • Handle: RePEc:hal:journl:hal-00543490
    Note: View the original document on HAL open archive server: https://hal-hec.archives-ouvertes.fr/hal-00543490
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    countries; falsify; economic data; strategically; evidence;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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