Decision Making and Ability: An Explanation of Elitism in China¡¯s Government

Shiqiang Li ()
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Shiqiang Li: School of Economics, University of Chinese Academy of Social Sciences, Beijing 100089, China

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2017, vol. 12, issue 4, 635-659

Abstract: This article tries to explain elitism in China¡¯s governmental decision making. Our model shows that the governments¡¯ expected utility increases with a bureaucrat¡¯s ability to make decisions under the flexible framework of delegation and communication (with separated reporting strategy). In the early of 1950s, China¡¯s government choose a flexible decision making framework in order to efficiently manage many affairs in a complex environment. This initial choice started the process of a self-reinforcing demand for ability inside of the flexible decision making framework. With the current reforms of streamlining administrations and retreating from the market, the elitism of China¡¯s government might reverse.

Keywords: elitism; decision rule; China; delegation; communication; bureaucrat (search for similar items in EconPapers)
JEL-codes: D23 H11 L23 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:fec:journl:v:12:y:2017:i:4:p:635-659

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