This paper analyzes whether the educational and professional background of a head of government matters for the implementation of market-liberalizing reforms. Employing panel data over the period 1970-2002, we present empirical evidence based on a novel data set covering profession and education...

The full-information rational expectations model is clearly rejected by the data. The expectation formation process has therefore important implications for macroeconomic outcomes. We examine how consumers react to information provided by the media, by taking into account that this information...

Utilizing the Michigan Household Consumer survey’s rotating panel microstructure we can identify if individuals have adjusted their expectations towards inflation. This allows us to directly capture the updating behavior of individual consumers regarding their short- and long-run inflation...

This paper examines how robust economic, political, and demographic variables are related to water and air pollution. Employing Bayesian Averaging of Classical Estimates (BACE) for a cross section of 47 countries, 34 variables and 3 proxies for air and water pollution over a period from 1980 to...

The recent literature proposes many variables as significant determinants of pollution. This paper gives an overview of this literature and asks which of these factors have an empirically robust impact on water and air pollution. We apply Extreme Bound Analysis (EBA) on a panel of up to 120...

What determines the emergence and survival of democracy? The authors apply extreme bounds analysis to test the robustness of fifty-nine factors proposed in the literature, evaluating over three million regressions with data from 165 countries from 1976 to 2002. The most robust determinants of...

Using the microdata of the Michigan Survey of Consumers, we evaluate whether U.S. consumers form macroeconomic expectations consistent with different economic concepts. We check whether their expectations are in line with the Phillips Curve, the Taylor Rule and the Income Fisher Equation. We...