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The role of regional information in the optimal composition of a committee

Author

Listed:
  • Robert-Paul Berben

    (De Nederlandsche Bank)

  • Beata Bierut

    (De Nederlandsche Bank)

  • Philipp Maier

    (Bank of America)

Abstract

We analyse the optimal composition of a committee comprising members that have private information and represent constituencies of different economic sizes. ‘Proportional representation' - i.e. each constituency represented proportionally to its economic weight - seems intuitively appealing, but as we demonstrate, the optimal committee composition is more complex. We show that representation in a committee depends also on (i) the ‘intrinsic' uncertainty of the available data, (ii) constituency's degree of sectoral specialization, and (iii) the extent to which economic developments are correlated between constituencies.

Suggested Citation

  • Robert-Paul Berben & Beata Bierut & Philipp Maier, 2012. "The role of regional information in the optimal composition of a committee," Economics Bulletin, AccessEcon, vol. 32(1), pages 510-517.
    • Handle: RePEc:ebl:ecbull:eb-11-00135
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    References listed on IDEAS

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    Cited by:

    1. Helge Berger, 2006. "Optimal central bank design: Benchmarks for the ECB," The Review of International Organizations, Springer, vol. 1(3), pages 207-235, September.
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    3. Helge Berger & Till Mueller, 2007. "How should large and small countries be represented in a currency union?," Public Choice, Springer, vol. 132(3), pages 471-484, September.
    4. Piotr Stanek, 2004. "How to assess proposals for enlargement reform of the European Central Bank," Revue de l'OFCE, Presses de Sciences-Po, vol. 91(5), pages 209-239.

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    More about this item

    Keywords

    optimal composition of a committee; information uncertainty; regional representation; EMU enlargement; monetary institutions;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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