Publication

This briefing analyzes the impact of inefficiencies in the bureaucratic organization of the state and presents a theory of the emergence and persistence of inefficient states. It shows that, under certain circumstances, inefficient state structures create more rents for bureaucrats than would an efficient state structure. It also argues that in order to generate enough political support, the coalition of the rich and the bureaucrats may not only choose an inefficient organization of the state, but may further expand the size of bureaucracy so as to gain additional votes.