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Neumeier, Florian (2018): Do businessmen make good governors? In: Economic Inquiry, Vol. 56, No. 4: pp. 2116-2136
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Abstract

This paper evaluates the economic performance of U.S. state governors with a business background (chief executive officer (CEO] governors). Applying a matching method, I find, first, that businesspeople tend to take office in times of economic and fiscal strain. Second, the tenures of CEO governors are associated with a 0.5 percentage points (pp.) higher annual income growth rate, a 0.4 pp. higher growth rate of the private capital stock, and a 0.6 pp. lower unemployment rate than are the tenures of non-CEO governors. State-level income inequality is not affected by CEO governors holding office, indicating that low-income households benefit from the economic upswing.