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• W3141036687 abstract "This article presents a model of political insulation of bureaucracies. Political in‡uence can harm competence because it lowers the incentives of bureaucrats to invest in competence. Politicians then want to adopt institutions that insulate the bureaucracy because this establishes a commitment to reward competence. Political leaders insulate the bureaucracy if public good provision is important compared to rent extraction or when political competition forces the political elite to internalize the welfare loss caused by patronage. Through this channel political reforms can lead to reforms of the bureaucracy. The theoretical …ndings are illustrated with existing empirical studies and data on central bank independence. I thank Oriana Bandiera, Timothy Besley, Matthew Ellman, Paul Grout, Stephen Hansen, Rafael Hortala-Vallve, Kai Konrad, Gilat Levy, Rocco Macchiavello, Rajesh Ramachandran, Ronny Razin, Gerard Padro i Miquel, Torsten Persson and Daniel Sturm for their advice and comments. The paper bene…tted from presentations at the London School of Economics, University of Warwick and the Institute for Economic Analysis. I acknowledge …nancial support from the Ramon y Cajal programme and Spanish Ministry of Economy and Competitiveness, through the Severo Ochoa Programme for Centres of Excellence in RD Campus UAB; 08193, Bellaterra (Barcelona); Spain. Tel.: 00 34 935929774. Email: hannes.mueller@iae.csic.es." @default.
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• W3141036687 date "2014-01-01" @default.
• W3141036687 modified "2023-09-23" @default.
• W3141036687 title "Insulation or Patronage: Political Institutions and Bureaucratic E¢ ciency" @default.
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