The Costs of Patronage: Evidence from the British Empire

By Guo Xu. The American Economic Review, 2018

140 citations recorded by the source corpus.

I combine newly digitized personnel and public finance data from the British colonial administration for the period 1854–1966 to study how patronage affects the promotion and incentives of governors. Governors are more likely to be promoted to higher salaried colonies when connected to their superior during the period of patronage. Once allocated, they provide more tax exemptions, raise less revenue, and invest less. The promotion and performance gaps disappear after the abolition of patronage appointments. Patronage therefore distorts the allocation of public sector positions and reduces the incentives of favored bureaucrats to perform. (JEL D73, F54, H83, J45, M51, N43, N44)

Subfields: Economics and Econometrics, Political Science and International Relations

View Paper: https://www.semanticscholar.org/paper/ceffef3c3f9660d909e458b19131c930b4d3c479

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In Economics and Econometrics

  1. Junyan Jiang
  2. Muyang Zhang
  3. Robin Burgess
  4. Guo Xu
  5. Arunish Chawla
  6. Marianne Bertrand
  7. J. Rud
  8. Dan-Olof Rooth

In Political Science and International Relations

  1. Muyang Zhang
  2. Junyan Jiang
  3. Marianne Bertrand

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