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…
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