Article ID Journal Published Year Pages File Type
7366885 Journal of Macroeconomics 2018 16 Pages PDF
Abstract
This paper analyzes the interdependency between bureaucratic quality and economic development. Capital accumulation changes bureaucratic quality through occupational choice in two cases. In the first case, the bureaucratic quality improves through economic development, and, in the second case, bureaucratic quality worsens or remains low. In both cases, good quality of bureaucracy cannot be realized without economic development. Workers and bureaucrats earn a higher income under a low-quality bureaucracy. A change in quality from low to high expands income inequality between unskilled and skilled individuals and contracts inequality among skilled individuals.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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