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Logrolling under fragmented authoritarianism: theory and evidence from China

Author

Listed:
  • Mario Gilli

    (University of Milan-Bicocca)

  • Yuan Li

    (University of Duisburg-Essen)

  • Jiwei Qian

    (National University of Singapore)

Abstract

This paper provides a rigorous theoretical and empirical analysis of the effect of logrolling between interest groups on social welfare in a non-democratic political system. In particular, we focus on China, where bureaucratic interest groups are separate vertical organizations reaching down from Beijing to the provinces and cities. The key question in this paper is: what are the effects of the logrolling of parochial interest groups on state policies and social welfare in autocracies? We address this question both theoretically and empirically. The theory predicts a specific distortion in resource allocation because of logrolling, while the empirical results confirm the theoretical prediction. We find policy outcomes under logrolling are characterized by excessive spending on all the interest groups’ preferred goods and insufficient spending on public goods. We test the existence of logrolling between the Ministry of Civil Affairs and Ministry of Health in China. Our result shows logrolling between the two ministries lead to inefficiencies in social security and health care policies.

Suggested Citation

  • Mario Gilli & Yuan Li & Jiwei Qian, 2018. "Logrolling under fragmented authoritarianism: theory and evidence from China," Public Choice, Springer, vol. 175(1), pages 197-214, April.
  • Handle: RePEc:kap:pubcho:v:175:y:2018:i:1:d:10.1007_s11127-018-0526-4
    DOI: 10.1007/s11127-018-0526-4
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    Cited by:

    1. Jianxing Lyu & Sören Prehn & Yanjie Zhang & Thomas Glauben & Yinchu Zeng, 2021. "Trade creation, political sensitivity and product exclusions: the political economy of agriculture protection in China’s FTAs," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(3), pages 627-657, July.
    2. Jiwei Qian & Zhuoyi Wen, 2021. "Extension of social insurance coverage to informal economy workers in China: An administrative and institutional perspective," International Social Security Review, John Wiley & Sons, vol. 74(1), pages 79-102, January.
    3. Mario, Gilli & Yuan, Li, 2018. "Transitions and Political Stability in Autocracies. The Role of Public Perception," Working Papers 383, University of Milano-Bicocca, Department of Economics, revised 13 Jul 2018.
    4. Long Zhang & John A. Parnell & Chuanhui Xiong, 2021. "Market and Nonmarket Strategies (NMS) in China: Performance Payoffs in Turbulent Environments," Asian Business & Management, Palgrave Macmillan, vol. 20(5), pages 644-665, November.

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    More about this item

    Keywords

    Authoritarianism; Policy making; Logrolling; China;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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