Political Economy, Uncategorized

Officials under the threat of reelection are more likely to conform with the prevailing public opinion but it is also easier for the public to monitor their actions. Constitutions should take the magnitude of these effects into account when prescribing whether the decision making power is allocated to officials who can get re-elected, to those who cannot or to the the public directly(i.e. deciding through a referendum).

Maskin & Tirole (2004) AER

Advertisements
Political Economy

Incentives faced by local bureaucrats partially explain deforestation in Indonesia. As districts split over time, the power of bureaucrats to obtain rents decreases and, as a consequence, they allow more illegal logging. When alternative sources of revenue increase, such as oil or gas, then deforestation decreases, because bureaucrats have more to lose from being found engaging in illegal activity in the forest sector.

Burgess et al. (2012) Quarterly Journal of Economics