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Decision Making and Ability: An Explanation of Elitism in China¡¯s Government

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  • Shiqiang Li

    (School of Economics, University of Chinese Academy of Social Sciences, Beijing 100089, China)

Abstract

This article tries to explain elitism in China¡¯s governmental decision making. Our model shows that the governments¡¯ expected utility increases with a bureaucrat¡¯s ability to make decisions under the flexible framework of delegation and communication (with separated reporting strategy). In the early of 1950s, China¡¯s government choose a flexible decision making framework in order to efficiently manage many affairs in a complex environment. This initial choice started the process of a self-reinforcing demand for ability inside of the flexible decision making framework. With the current reforms of streamlining administrations and retreating from the market, the elitism of China¡¯s government might reverse.

Suggested Citation

  • Shiqiang Li, 2017. "Decision Making and Ability: An Explanation of Elitism in China¡¯s Government," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 12(4), pages 635-659, December.
    • Handle: RePEc:fec:journl:v:12:y:2017:i:4:p:635-659
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-006-017-0026-8
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    More about this item

    Keywords

    elitism; decision rule; China; delegation; communication; bureaucrat;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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