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Promiscuous Elites and Economic Development

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  • Elise S. Brezis

    ()
    (Bar-Ilan University)

Abstract

This paper analyzes the interconnection between elites and its effects on economic growth. For decades, the bureaucratic elite has been joining the business elite after leaving office, and this in growing numbers. This relationship has been termed “the revolving door” in English, “pantouflage” in French, and “amakudari” [descent from heaven] in Japanese. The purpose of this paper is to explain why this social behavior takes place, and why the political elite does not try to prevent it. Moreover, this paper shows that the bureaucratic elite obtains excessive bureaucratic power, and that promiscuous elites actually lead to lower economic growth.

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File URL: http://econ.biu.ac.il/files/economics/working-papers/2012-09.pdf
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Bibliographic Info

Paper provided by Bar-Ilan University, Department of Economics in its series Working Papers with number 2012-09.

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Length: 28 pages
Date of creation: Aug 2012
Date of revision:
Handle: RePEc:biu:wpaper:2012-09

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Keywords: elites; bureaucracy; abuse of power; revolving door; economic growth.;

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  1. R. Aumann, 2010. "Correlated Equilibrium as an expression of Bayesian Rationality," Levine's Bibliography 513, UCLA Department of Economics.
  2. David J. Salant, 1995. "Behind the Revolving Door: A New View of Public Utility Regulation," RAND Journal of Economics, The RAND Corporation, vol. 26(3), pages 362-377, Autumn.
  3. Eckert, Ross D, 1981. "The Life Cycle of Regulatory Commissioners," Journal of Law and Economics, University of Chicago Press, vol. 24(1), pages 113-20, April.
  4. Mark Gradstein, 2007. "Inequality, democracy and the protection of property rights," Economic Journal, Royal Economic Society, vol. 117(516), pages 252-269, 01.
  5. Easterly, William, 2000. "the middle class consensus and economic development," Policy Research Working Paper Series 2346, The World Bank.
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