In this paper we present a technique for assessing data quality based on conformity with Benford's Law, which states that the first digits of numbers generated from natural phenomena do not occur with equal frequency. If data do not conform to the Benford distribution, then questions arise about the process that generated it. Because neutral transformations should preserve conformity to Benford's Law, any macroeconomic adjustment that destroys this conformity should make those calculations suspect.Benford's Law is applied to one of the most commonly used data sets in economics: international macroeconomic statistics. We find that the World Bank international GDP data and purchasing power parity (PPP) corrected Penn World tables for OECD countries conform well to Benford's Law. But some subsets of the data -particularly GDP figures from the developing world -show non-conformity consistent with deliberate manipulation of the underlying series. The test also flags potential problems with a variety of standard macro transformations of the data.
This examination of official commercial statistics suggests that the conventional wisdom regarding early free-trade efforts of Britain and France is wrong. French average tariff levels were, surprisingly, consistently below those of Britain throughout most of the nineteenth century, even after the abolition of the Corn Laws and before passage of the 1860 Treaty of Commerce. Previous scholarship has focused on French commercial policies covering a narrow range of items and has largely ignored the overall trade policies of both nations. This study moves us further away from stories of development and trade confined to a few "leading" sectors."Our Parliament is to be prorogued on Tuesday and dissolved the same day," Victoria wrote to her Belgian uncle on June 29, 1852. "Lord Derby himself told us, that he considered Protection as quite gone. It is a pity they did not find this out a little sooner; it would have saved so much annoyance, so much difficulty."' While France was thus maintaining almost intact her virtually prohibitive tariff, England was making rapid progress toward the adoption of complete free trade, so that the divergence in the tariff policies of the two countries became steadily greater. 2 O ne of the great economic advances of the nineteenth century was the spread of liberalism and the expansion of world trade. In the popular fable that makes "history" of this event, Britain was the great nation of free trade, whose liberal commercial policy made possible the achievement of unparalleled peace and prosperity. Britain's abandonment of protection and subsequent rapid success spurred other nations
We report data from laboratory experiments where participants were primed using phrases related to markets and trade. Participants then participated in trust games with anonymous strangers. The decisions of primed participants are compared to those of a control group. We find evidence that priming for market participation affects positively the beliefs regarding the trustworthiness of anonymous strangers and increases trusting decisions.
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