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Insulation or Patronage: Political Institutions and Bureaucratic Efficiency

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  • Mueller Hannes

    (Institut d’Analisi Economica, CSIC, MOVE and Barcelona GSE, Campus UAB, 08193 Bellaterra, Barcelona, Spain)

Abstract

This article presents a model of political insulation of bureaucracies. Political influence 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 findings are illustrated with existing empirical studies and data on central bank independence.

Suggested Citation

  • Mueller Hannes, 2015. "Insulation or Patronage: Political Institutions and Bureaucratic Efficiency," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(3), pages 961-996, July.
    • Handle: RePEc:bpj:bejeap:v:15:y:2015:i:3:p:961-996:n:1
    DOI: 10.1515/bejeap-2013-0084
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    Cited by:

    1. Frank L. K. Ohemeng & Augustina Akonnor, 2023. "The New Public Sector Reform Strategy in Ghana: Creating a New Path for a Better Public Service?," Public Organization Review, Springer, vol. 23(2), pages 839-855, June.
    2. Quaresima, Federico, 2019. "Patronage Appointments between Politics and Public Governance: a Review," MPRA Paper 94650, University Library of Munich, Germany.
    3. Daniel Gibbs, 2020. "Civil service reform, self‐selection, and bureaucratic performance," Economics and Politics, Wiley Blackwell, vol. 32(2), pages 279-304, July.
    4. Lee Epstein & Eric A. Posner, 2016. "Supreme Court Justices' Loyalty to the President," The Journal of Legal Studies, University of Chicago Press, vol. 45(2), pages 401-436.
    5. Federico Quaresima & Fabio Fiorillo, 2017. "The patronage effect: a theoretical perspective of patronage and political selection," Working papers 63, Società Italiana di Economia Pubblica.

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