CONTINGENT DELEGATION AND AMBIGUOUS PROPERTY RIGHTS The Case of China’s Reform

نویسندگان

  • Nhat Le
  • Steven Tadelis
چکیده

We reconsider the theory of ambiguous property rights in China. In a static game context, this ownership allocation is good because a local entrepreneur can probably get services provided by local bureaucrats at lower costs than a private owner; but bad because once knowing the firm’s unobservable income, local bureaucrats are likely to encroach the firm. In an ongoing relationship, such a predatory behaviour may be limited if local bureaucrats care enough about future returns. Ironically, they often discount future too much. An additional device to supplement the shadow of future is needed. In China, this is the contingent delegation from the central. Under this policy, local bureaucrats must compete to gain more autonomy on the basis of local economy’s performance. If the expected gain from the competition is sufficiently large, it may become incentive compatible for capable local bureaucrats to enhance local firms, despite incapable ones shirks. For those shirkers, the central still keeps regulating their activities as if they were under the central planing regime. One then sees that the pace of reform is slow and uneven across regions or sectors. It may be seen as a step back compared with a rapid and large-scale reform such as the one in the Former Soviet Union. However, this policy has served reasonably well to solve some incentive problems in reform, including the central contradiction: the local agencies blame the central for lack of autonomy; and the central blames them for lack of accountability.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Compliance Engineering: Aligning Software Requirements with Policies and Government Regulations

As information is increasingly managed electronically, policies and government regulations intended to protect personal privacy are increasing the requirements complexity of software systems. These regulations and policies are frequently developed by lawyers and domain experts – not engineers – resulting in complex and ambiguous legal language. To ensure software complies with the law, software...

متن کامل

Robust delegation with uncertain monetary policy preferences

a r t i c l e i n f o Recent research has renewed interest in the exploration of the optimal design of monetary policy institutions in the presence of uncertainty. In this paper, we revisit the rationale for delegation to a weight-conservative central banker when the social planner's knowledge about the true preferences of delegates is ex ante ambiguous and he exhibits a preference for robustne...

متن کامل

Research on RBAC - based Separation of Duty Constraints

Separation of duty (SOD) is an important characteristic in the role-based access control (RBAC) system. In view of some issues such as various variations of SOD constraints (SODs), ambiguous relations among constraint states, this paper formally defines several typical SODs and analyzes the transition relations among different SODs states. In combination with a delegation case, it goes an explo...

متن کامل

Patterns for collaborative work in health care teams

OBJECTIVE The problem of designing and managing teams of workers that can collaborate working together towards common goals is a challenging one. Incomplete or ambiguous specification of responsibilities and accountabilities, lack of continuity in teams working in shifts, inefficient organization of teams due to lack of information about workers' competences and lack of clarity to determine if ...

متن کامل

Delegation in decision making under uncertainty. Are preferences incomplete?

In this paper we experimentally document the existence of an unexplored violation of rationality in decision making under uncertainty. In a series of incentivized decision tasks subjects have to choose between risky and ambiguous prospects or state to be indifferent, where the last option effectively means delegating the choice to a fair chance device. We observe that half of the subjects deleg...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2003