Decision Making and Ability: An Explanation of Elitism in China’s Government

Shiqiang Li

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PDF(471 KB)
Front. Econ. China ›› 2017, Vol. 12 ›› Issue (4) : 635-659. DOI: 10.3868/s060-006-017-0026-8
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Decision Making and Ability: An Explanation of Elitism in China’s Government

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Abstract

This article tries to explain elitism in China’s governmental decision making. Our model shows that the governments’ expected utility increases with a bureaucrat’s ability to make decisions under the flexible framework of delegation and communication (with separated reporting strategy). In the early of 1950s, China’s government choose a flexible decision making framework in order to efficiently manage many affairs in a complex environment. This initial choice started the process of a self-reinforcing demand for ability inside of the flexible decision making framework. With the current reforms of streamlining administrations and retreating from the market, the elitism of China’s government might reverse.

Keywords

elitism / decision rule, China / delegation / communication, bureaucrat

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Shiqiang Li. Decision Making and Ability: An Explanation of Elitism in China’s Government. Front. Econ. China, 2017, 12(4): 635‒659 https://doi.org/10.3868/s060-006-017-0026-8

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2017 Higher Education Press
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