There has been almost no research into what makes an effective chairperson in a university department. This paper constructs a historical longitudinal dataset on economics departments in 58 US research universities. It documents evidence that a department's research output tends to improve substantially when the incoming department Chair is himself or herself an outstanding scholar (in particular, is highly cited). The analysis adjusts for a set of other possible influences, including the standing of the department, university resources, the previous Chair, the trend in the department's productivity, and time‐lags. Possible interpretations, and implications for future research, are discussed.