On the Institutional Incentives Faced by Brazilian Civil Servants

Maurício Soares Bugarin and Fernando B. Meneguin

No 42/2014, Economics and Politics Working Paper Series from Economics and Politics Research Group (EPRG), University of Brasília

Abstract: The present paper analyzes the institutional incentives public managers face in Brazil. A decision-theoretic model suggests that the constitutional principle of "Legality" induces tenured civil servants to adopt a non-innovative, bureaucratic management style. Conversely, temporary appointed managers tend to be more active, which could either generate higher social returns, in the case of socially inclined managers, or lower social return, in the case of managers involved in corrupt activities. A brief econometric analysis from 2002 to 2011 suggests that Ministries with higher percentages of temporary appointed managers tend to have higher corruption levels. Then, the conclusion discusses how institutions could be adjusted in order to stimulate a socially desirable innovative management while curbing corrupt practices.

Date: 2014-11-05
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Persistent link: https://EconPapers.repec.org/RePEc:gvn:eprgwp:422014

DOI: 10.5281/zenodo.23601894

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