A theory of misgovernance.

This paper tries to explain why government bureaucracies are often associated with red tape, corruption, and lack of incentives. The paper identifies two specific ingredients that together can provide an explanation: the fact that governments often act precisely in situations where markets fail and...

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Detalles Bibliográficos
Publicado en:Quarterly Journal of Economics Vol. 112; pp. 1289 - 1333
Autor principal: Banerjee, Abhijit V.
Formato: Artículo
Publicado: Oxford University Press / UK November 1997
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:This paper tries to explain why government bureaucracies are often associated with red tape, corruption, and lack of incentives. The paper identifies two specific ingredients that together can provide an explanation: the fact that governments often act precisely in situations where markets fail and the presence of agency problems within the government. We show that these problems are exacerbated at low levels of development and in bureaucracies dealing with poor people. We also argue that we need to posit the existence of a welfare-oriented constituency within the government in order to explain red tape and corruption. Reprinted by permission of the publisher.