EconPapers    
Economics at your fingertips  
 

Rent seeking bureaucracies and oversight in a simple growth model

Pierre Daniel Sarte ()

No 98-03, Working Paper from Federal Reserve Bank of Richmond

Abstract: Following recent cross-country empirical work, research on public policy and growth has come to examine the impact of inefficient or corrupt bureaucracies. Most of this work has emphasized the interactions of bureaucracies with private markets. By contrast, this paper focuses on the relationship between rent-seeking bureaucracies and their political authority. We show that when oversight is relatively costly, as in many developing economies, the political authority exercises little monitoring of its agencies which reduces the effectiveness of productive government spending. Moreover, when the technology used to provide public services is poor, bureaus better succeed in requesting overly large budgets before triggering any monitoring. Both of these characteristics contribute to reducing the growth rate of already poor economies.

Keywords: Economic development; Government lending; Technology (search for similar items in EconPapers)
Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.richmondfed.org/publications/research/working_papers/1998/wp_98-3.cfm (text/html)
http://www.richmondfed.org/publications/research/w ... /1998/pdf/wp98-3.pdf (application/pdf)

Related works:
Journal Article: Rent-seeking bureaucracies and oversight in a simple growth model (2001) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedrwp:98-03

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Paper from Federal Reserve Bank of Richmond Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2021-04-12
Handle: RePEc:fip:fedrwp:98-03