Do personal characteristics of finance ministers affect the development of public debt?
Using a unique dataset of personal characteristics of national finance ministers in Europe (1980 - 2010), I show that especially a finance minister's experience affects the development of public debt. Both a finance minister's experience gained in office and his political experience have an impact: The change of the debt to GDP ratio is negative the more experience a finance minister has gained as a minister of finance or in former positions as a national cabinet member. While the former result suffers from potential endogeneity, several arguments support that the latter result can be interpreted in a causal way. In contrast, a finance minister's educational background or ideology have no significant impact on public debt changes.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.zew.de/
More information through EDIRC
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.:
- Allan Drazen, 2001. "The Political Business Cycle After 25 Years," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 75-138 National Bureau of Economic Research, Inc.
- Neck, Reinhard & Getzner, Michael, 2001. " Politico-Economic Determinants of Public Debt Growth: A Case Study for Austria," Public Choice, Springer, vol. 109(3-4), pages 243-68, December.
- Edin, Per-Anders & Ohlsson, Henry, 1991.
"Political determinants of budget deficits: Coalition effects versus minority effects,"
European Economic Review,
Elsevier, vol. 35(8), pages 1597-1603, December.
- Edin, P-A. & Ohlsson, H., 1990. "Political Determinants Of Budget Deficits: Coalition Effects Versus Minority Effects," Papers 1990k, Uppsala - Working Paper Series.
- Dany Jaimovich & Ugo Panizza, 2006.
"Public Debt around the World: A New Dataset of Central Government Debt,"
Research Department Publications
4461, Inter-American Development Bank, Research Department.
- Dany Jaimovich & Ugo Panizza, 2010. "Public debt around the world: a new data set of central government debt," Applied Economics Letters, Taylor & Francis Journals, vol. 17(1), pages 19-24, January.
- Dany Jaimovich & Ugo Panizza, 2006. "Public Debt around the World: A New Dataset of Central Government Debt," IDB Publications (Working Papers) 6710, Inter-American Development Bank.
- Shi, Min & Svensson, Jakob, 2006. "Political budget cycles: Do they differ across countries and why?," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1367-1389, September.
- Cukierman, A. & Tommasi, M., 1997.
"When Does It Take a Nixon to Go to China,"
30-97, Tel Aviv.
- Potrafke, Niklas, 2012.
"Political cycles and economic performance in OECD countries: Empirical evidence from 1951-2006,"
Munich Reprints in Economics
19272, University of Munich, Department of Economics.
- Niklas Potrafke, 2012. "Political cycles and economic performance in OECD countries: empirical evidence from 1951–2006," Public Choice, Springer, vol. 150(1), pages 155-179, January.
- Potrafke, Niklas, 2009. "Political cycles and economic performance in OECD countries: empirical evidence from 1951-2006," MPRA Paper 23751, University Library of Munich, Germany.
- Timothy Besley & Jose G. Montalvo & Marta Reynal‐Querol, 2011. "Do Educated Leaders Matter?," Economic Journal, Royal Economic Society, vol. 121(554), pages F205-, 08.
- Axel Dreher & Michael J. Lamla & Sarah M. Rupprecht & Frank Somogyi, 2006.
"The impact of political leaders’ profession and education on reforms,"
KOF Working papers
06-147, KOF Swiss Economic Institute, ETH Zurich.
- Dreher, Axel & Lamla, Michael J. & Lein, Sarah M. & Somogyi, Frank, 2009. "The impact of political leaders' profession and education on reforms," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 169-193, March.
- Tabellini, Guido & Alesina, Alberto, 1990.
"A Positive Theory of Fiscal Deficits and Government Debt,"
3612769, Harvard University Department of Economics.
- Alesina, Alberto & Tabellini, Guido, 1990. "A Positive Theory of Fiscal Deficits and Government Debt," Review of Economic Studies, Wiley Blackwell, vol. 57(3), pages 403-14, July.
- Perotti, Roberto & Kontopoulos, Yianos, 2002. "Fragmented fiscal policy," Journal of Public Economics, Elsevier, vol. 86(2), pages 191-222, November.
- Volkerink, Bjorn & De Haan, Jakob, 2001. " Fragmented Government Effects on Fiscal Policy: New Evidence," Public Choice, Springer, vol. 109(3-4), pages 221-42, December.
- Friedrich Heinemann & Philipp Mohl & Steffen Osterloh, 2009.
"Who’s afraid of an EU tax and why?—revenue system preferences in the European Parliament,"
The Review of International Organizations,
Springer, vol. 4(1), pages 73-99, March.
- Mohl, Philipp & Heinemann, Friedrich & Osterloh, Steffen, 2008. "Who's afraid of an EU tax and why? Revenue system preferences in the European Parliament," ZEW Discussion Papers 08-027, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Hallerberg, Mark & Strauch, Rolf & von Hagen, Jürgen, 2004.
"The design of fiscal rules and forms of governance in European Union countries,"
Working Paper Series
0419, European Central Bank.
- Hallerberg, Mark & Strauch, Rolf & von Hagen, Jurgen, 2007. "The design of fiscal rules and forms of governance in European Union countries," European Journal of Political Economy, Elsevier, vol. 23(2), pages 338-359, June.
- Hallerberg, Mark & Strauch, Rolf & Hagen, Jürgen von, 2006. "The design of fiscal rules and forms of governance in European Union countries," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 150, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Bernd Hayo & Florian Neumeier, 2011.
"Political Leaders’ Socioeconomic Background and Fiscal Performance in Germany,"
MAGKS Papers on Economics
201141, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
- Hayo, Bernd & Neumeier, Florian, 2014. "Political leaders' socioeconomic background and fiscal performance in Germany," European Journal of Political Economy, Elsevier, vol. 34(C), pages 184-205.
- Per Pettersson-Lidbom, 2001. "An Empirical Investigation of the Strategic Use of Debt," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 570-583, June.
- JÃ¼rgen von Hagen & Andrew Hughes Hallett & Rolf Strauch, 2001. "Budgetary Consolidation in EMU," European Economy - Economic Papers 148, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
- Etienne Farvaque & Hakim Hammadou & Piotr Stanek, 2011. "Selecting Your Inflation Targeters: Background and Performance of Monetary Policy Committee Members," German Economic Review, Verein für Socialpolitik, vol. 12(2), pages 223-238, 05.
- J. O’Roark & William Wood, 2011. "Determinants of congressional minimum wage support: the role of economic education," Public Choice, Springer, vol. 147(1), pages 209-225, April.
- Jürgen von Hagen, 2002. "Fiscal Rules, Fiscal Institutions, and Fiscal Performance," The Economic and Social Review, Economic and Social Studies, vol. 33(3), pages 263-284.
- Yianos Kontopoulos & Roberto Perotti, 1999. "Government Fragmentation and Fiscal Policy Outcomes: Evidence from OECD Countries," NBER Chapters, in: Fiscal Institutions and Fiscal Performance, pages 81-102 National Bureau of Economic Research, Inc.
- Jochimsen, Beate & Thomasius, Sebastian, 2014.
"The perfect finance minister: Whom to appoint as finance minister to balance the budget,"
European Journal of Political Economy,
Elsevier, vol. 34(C), pages 390-408.
- Beate R. Jochimsen & Sebastian Thomasius, 2012. "The Perfect Finance Minister: Whom to Appoint as Finance Minister to Balance the Budget?," Discussion Papers of DIW Berlin 1188, DIW Berlin, German Institute for Economic Research.
- Alesina, Alberto & Perotti, Roberto, 1996. "Fiscal Discipline and the Budget Process," American Economic Review, American Economic Association, vol. 86(2), pages 401-07, May.
- Swank, Otto H, 2002. " Budgetary Devices for Curbing Spending Prone Ministers and Bureaucrats," Public Choice, Springer, vol. 111(3-4), pages 237-57, June.
- Xavier Debrun & Laurent Moulin & Alessandro Turrini & Joaquim Ayuso-i-Casals & Manmohan S. Kumar, 2008. "Tied to the mast? National fiscal rules in the European Union," Economic Policy, CEPR;CES;MSH, vol. 23, pages 297-362, 04.
- Jochimsen, Beate & Nuscheler, Robert, 2005.
"The Political Economy of the German Länder Deficits,"
2005/6, Free University Berlin, School of Business & Economics.
- Jochimsen, Beate & Nuscheler, Robert, 2007.
"The political economy of the German Länder deficits
[Die politische Ökonomie der Budgetdefizite der deutschen Bundesländer]," Discussion Papers, Research Unit: Market Processes and Governance SP II 2007-06, Social Science Research Center Berlin (WZB).
- Jochimsen, Beate & Nuscheler, Robert, 2007. "The political economy of the German Länder deficits
- Borge, Lars-Erik, 2005. "Strong politicians, small deficits: evidence from Norwegian local governments," European Journal of Political Economy, Elsevier, vol. 21(2), pages 325-344, June.
- Etienne Farvaque & Hakim Hammadou & Piotr Stanek, 2009. "Select your Committee: the Impact of Central Bankers Background on Inflation," Economie Internationale, CEPII research center, issue 117, pages 99-129.
- Lars Feld & Christoph Schaltegger, 2010.
"Political stability and fiscal policy: time series evidence for the Swiss federal level since 1849,"
Springer, vol. 144(3), pages 505-534, September.
- Lars P. Feld & Christoph A. Schaltegger, 2009. "Political Stability and Fiscal Policy - Time Series Evidence for the Swiss Federal Level since 1849," CESifo Working Paper Series 2691, CESifo Group Munich.
- 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.
- Roubini, Nouriel & Sachs, Jeffrey D., 1989. "Political and economic determinants of budget deficits in the industrial democracies," European Economic Review, Elsevier, vol. 33(5), pages 903-933, May.
- Gohlmann, Silja & Vaubel, Roland, 2007. "The educational and occupational background of central bankers and its effect on inflation: An empirical analysis," European Economic Review, Elsevier, vol. 51(4), pages 925-941, May.
When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:12068. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.