Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5066389 | European Economic Review | 2017 | 17 Pages |
Abstract
The new Bank of Israel Law of 2010 changed monetary policy decision-making at the Bank of Israel from a setup where decisions are taken by the governor to one where decisions are taken by a committee of voting members. We use this institutional change as a natural experiment to compare individual versus collective decision-making. Empirical results show different dynamics for interest rate decisions across the two regimes and support the view that the status quo bias is larger when decisions are taken by a committee than when they are taken by a single individual.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Francisco Ruge-Murcia, Alessandro Riboni,