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Expert insights into forces shaping policy decisions

  • In politics and economics, unsuspected forces can have a profound impact on anything from the administration of justice to the movement of financial markets.

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Professor Deniz Okat (left) and Professor Abhiroop Mukherjee (centre), assisted by event moderator Professor Chu Zhang (right), Head and Professor of Department of Finance, spoke about the wider impact of political compromises and government control of economic data at the latest BizInsight@HKUST seminar

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And, with this in mind, the latest in the BizInsight@HKUST lunchtime presentation series took a closer look at two particular areas: political compromise in judicial appointments in the United States and the extent to which government controlled data really affects the economy.

The event, which took place in Central on April 23, was another opportunity for leading academics from HKUST Business School to share recent findings with a wider audience and invite questions and feedback. As they did so, it also became clear that greater public awareness and alternative sources of data may well lead to further change.

Focusing on the US, Professor Deniz Okat, Assistant Professor in the Department of Finance, explained how the government has a great deal of control over the juridical system in the way candidates are nominated and confirmed for positions as federal judges.

Older judges are easier to agree on, largely because they will have fewer opportunities to make an impact. My theoretical model predicts weaker nominees are more likely to be appointed.

Older judges are easier to agree on, largely because they will have fewer opportunities to make an impact. My theoretical model predicts weaker nominees are more likely to be appointed.
Professor Deniz Okat

However, the US constitution also includes many checks and balances. In many cases, these make it necessary for the ruling party to compromise with the opposition, the idea being that this leads to the best overall outcome.

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