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Measuring Elite Quality

Author

Listed:
  • Casas i Klett, Tomas
  • Cozzi, Guido
  • Diebold, Celine
  • Zeller, Camille

Abstract

The aim of this paper is two-fold. Firstly, we present a methodology to measure the novel concept of elite quality (EQ), that is, country’s elites’ propensity– on aggregate – to create value, rather than rent seek. A four-level architecture allows for both an overall quantification of a country’s EQ, as well as an in-depth analysis of specific political economy dimensions, such as elite power. Secondly, the Elite Quality Index (EQx) is brought to life using data on 72 indicators for 32 countries. Our index negatively correlates with inequality measures, which suggests that more powerful elites less inclined to run value creation business models will exacerbate inequality. A variety of robustness tests suggest that the EQx scores and ranking are robust to ceteris paribus changes in key modelling assumptions. Thus, the EQx offers a reliable framework and new tool to analyze the political economy of countries.

Suggested Citation

  • Casas i Klett, Tomas & Cozzi, Guido & Diebold, Celine & Zeller, Camille, 2020. "Measuring Elite Quality," MPRA Paper 102068, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:102068
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    File URL: https://mpra.ub.uni-muenchen.de/102068/1/MPRA_paper_102068.pdf
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The Elite Quality Index
      by Tyler Cowen in Marginal Revolution on 2020-09-29 04:31:27
    2. There’s a popular backlash against experts. Here’s why that matters
      by ? in Forum:Blog on 2021-03-15 20:18:51

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    1. Tomas, Casas i Klett & Guido, Cozzi, 2020. "Elite Quality Report 2020," MPRA Paper 102768, University Library of Munich, Germany.

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    More about this item

    Keywords

    index; elite quality; institutions; value creation; rent seeking; crony capitalism.;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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