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Bureaucrats under Populism

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  • Morelli, Massimo
  • Sasso, Greg

Abstract

We explore the consequences of populism for bureaucrats’ incentives by analyzing a model of delegated policy-making between politicians and bureaucrats. Populist leaders prefer loyalist bureaucrats over competent ones, and this leads competent bureaucrats to engage in strategic policy-making: they sometimes feign loyalty to the current incumbent; and they sometimes implement the correct policy even at the cost of being fired. We show that feigning loyalty becomes more likely as the probability of a populist-loyalist combination increases. We also show that bureaucratic turnover is higher under populists when the bureaucracy is strong and higher under non-populists when the bureaucracy is weak.

Suggested Citation

  • Morelli, Massimo & Sasso, Greg, 2020. "Bureaucrats under Populism," CEPR Discussion Papers 14499, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:14499
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    References listed on IDEAS

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    Cited by:

    1. Hartwell, Christopher A. & Devinney, Timothy, 2021. "Populism, political risk, and pandemics: The challenges of political leadership for business in a post-COVID world," Journal of World Business, Elsevier, vol. 56(4).
    2. Titl, Vitezslav & De Witte, Kristof, 2022. "How politics influence public good provision," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    3. Luca Bellodi & Massimo Morelli & Matia Vannoni, 2021. "The Costs of Populism for the Bureaucracy and Government Performance: Evidence from Italian Municipalities," BAFFI CAREFIN Working Papers 21158, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.

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