Measuring Elite Quality

Casas i Klett, Tomas and Cozzi, Guido and Diebold, Celine and Zeller, Camille (2020): Measuring Elite Quality.

Abstract

The aim of this paper is two-fold. Firstly, we present a methodology to measure the novel concept of elite quality (EQ), that is, country’s elites’ propensity– on aggregate – to create value, rather than rent seek. A four-level architecture allows for both an overall quantification of a country’s EQ, as well as an in-depth analysis of specific political economy dimensions, such as elite power. Secondly, the Elite Quality Index (EQx) is brought to life using data on 72 indicators for 32 countries. Our index negatively correlates with inequality measures, which suggests that more powerful elites less inclined to run value creation business models will exacerbate inequality. A variety of robustness tests suggest that the EQx scores and ranking are robust to ceteris paribus changes in key modelling assumptions. Thus, the EQx offers a reliable framework and new tool to analyze the political economy of countries.

• Item Type: MPRA Paper
• Language: English
• Keywords: index; elite quality; institutions; value creation; rent seeking; crony capitalism.
• Subjects: D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior; F - International Economics > F5 - International Relations, National Security, and International Political Economy; P - Economic Systems > P1 - Capitalist Systems > P16 - Political Economy; P - Economic Systems > P4 - Other Economic Systems > P48 - Political Economy ; Legal Institutions ; Property Rights ; Natural Resources ; Energy ; Environment ; Regional Studies

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