The revolving door, state connections, and inequality of influence in the financial sector

@article{Brezis2019TheRD,
  title={The revolving door, state connections, and inequality of influence in the financial sector},
  author={Elise S. Brezis and Jo{\"e}l Cariolle},
  journal={Journal of Institutional Economics},
  year={2019},
  volume={15},
  pages={595 - 614}
}
Abstract This paper shows that the revolving door generates inequality of influence between financial firms and creates economic distortions. We first develop a theoretical model, introducing the notion of “bureaucratic capital” and stressing how the revolving door generates inequality in bureaucratic capital leading to inequality in profits. Then this prediction is tested, using a new database that tracks the revolving door process involving the 20 biggest US “diversified banks.” We show that… 
View on Cambridge Press
1 Citations

One Citation

Citation Type

Citation Type

Financial governance in a neoliberal era: controlling the banks by controlling their managerial recruitment sources
This paper asks: What are the factors that affect the recruitment sources of the two most senior management functions in banks—the board chairperson and the chief executive officer? Prior research…

References

SHOWING 1-10 OF 37 REFERENCES
The Revolving Door, State Connections, and Inequality of Influence in the Financial Sector
This paper explains why the revolving door generates inequality of influence between financial firms and creates economic distortions. We show that big financial companies, especially the ones…
Legal conflicts of interest of the revolving door
Abstract This paper analyzes the conflicts of interest arising from the “revolving door”. The revolving door is a common phenomenon, and it is unlikely that most of it can be explained by ‘regulatory…
The Revolving Door and Worker Flows in Banking Regulation
This paper traces career transitions of federal and state U.S. banking regulators from a large sample of publicly available curricula vitae, and provides basic facts on worker flows between the…
Political Connections and Corporate Bailouts
We analyze the likelihood of government bailouts of 450 politically connected firms from 35 countries during 1997‐2002. Politically connected firms are significantly more likely to be bailed out than…
The Inequality of Influence
This paper develops a proxy measure of the inequality of influence on the basis of survey evidence from 2002 Business Environment and Enterprise Performance Survey (BEEPS) conducted among 6,500 firms…
Credit Markets and the Control of Capital
Traditional discussions of the role of capital markets have identified a number of distinct functions which they perforrn: they allocate scarce capital among competing users and uses,l and they…
The Economics of Bank Regulation
The authors review the economics of bank regulation as developed in the contemporary literature. They begin with an examination of the central aspects of modern banking theories in explaining the…
Conscientious regulation and post-regulatory employment restrictions
Abstract In this paper we address the issue of regulatory capture. Firms can seek to capture regulators by offering them ‘post-regulatory’ jobs at a higher wage than the regulator would otherwise…
Political connections and the cost of equity capital
TLDR
Using propensity score matching models, it is found that politically connected firms enjoy a lower cost of equity capital than their non-connected peers, and that political connections are more valuable for firms with stronger ties to political power.
Bankruptcies, Bailouts, and Some Political Economy of Corporate Reorganization
Bankruptcy has long been the standard approach to reorganizing failing corporate entities. In recent years, bailout has appeared as an alternative option, whereby a governmental entity takes charge…
...
1
2
3
4
...