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This paper analyzes incentives for cronyism in politics within a political agency model with moral hazard. The analysis focuses on the institutional features, which define contractual and appointment procedures within political organizations. The institutional framework does not allow explicit...
Persistent link: https://www.econbiz.de/10013068221
Since 2004, China's industrial land price has remained constant while other land prices in China have increased to about six times their 2004 levels. This paper measures the degree of industrial land subsidy to a firm using the ratio of the market value of land in the neighborhood to the price...
Persistent link: https://www.econbiz.de/10012895544
We use a new machine learning-enabled, social network based measurement technique to assemble a novel dataset of firms' political connections in India. Leveraging this data along with a long panel of detailed financial transactions of firms, we study how political connections matter during an...
Persistent link: https://www.econbiz.de/10014354756
Using a hand-coded dataset tracking the backgrounds of U.S. governors between 1993 and 2021, we argue that officeholders with military experience are less likely to engage in political cronyism. Military governors are less likely to increase subsidies to corporations when they become “lame...
Persistent link: https://www.econbiz.de/10014355048
purposes patronage contracting. By exploiting close-elections regression discontinuities across Brazilian municipalities, I … show that opportunistic mayors who engage in clientelistic practices outsource not only service delivery but also patronage … contrary, public-sector outsourcing can exacerbate government reliance on patronage appointments due to the reduced oversight …
Persistent link: https://www.econbiz.de/10014345347
This paper uses household panel data from rural Vietnam to explore the effects of having a relative in a position of political or bureaucratic power on farmers' agricultural investment decisions. Our main result is that households significantly increase their investment in land improvement as a...
Persistent link: https://www.econbiz.de/10009231299
We investigate the relationship between the time politicians stay in office and the functioning of public procurement. To this purpose, we collect a data set on the Italian municipal governments and all the procurement auctions they administered between 2000 and 2005. Identification is achieved...
Persistent link: https://www.econbiz.de/10003962924
their patronage powers. We support this conclusion with new evidence from many countries, allowing us to rule out …
Persistent link: https://www.econbiz.de/10011292966
We study the local favoritism of appointed German state ministers. Matching hand-collected data on ministers' place of residence to a sample of more than 8,000 west German municipalities during the period 1994-2013, we find that the home municipality of a state minister experiences higher...
Persistent link: https://www.econbiz.de/10011778673
Nepotism usually means hiring relatives, close friends, regardless of their merits and abilities. This would be a simple definition of nepotism, which as we all know, rapidity became the "criterion" and an issue favourable for employment leading people by family ties, while corruption is a...
Persistent link: https://www.econbiz.de/10011565575