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Democratic Governance and Economic Performance: How Accountability Can Go Too Far in Politics, Law, and Business

Posted on 2010-03-16




Name:Democratic Governance and Economic Performance: How Accountability Can Go Too Far in Politics, Law, and Business
ASIN/ISBN:0387787062
Language:English
File size:12.6 Mb
Publisher: Springer
Pages: 168
Publish Date: 2009
ISBN: 0387787062
File Type: PDF
File Size: 12,6 mb
   Democratic Governance and Economic Performance: How Accountability Can Go Too Far in Politics, Law, and Business



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Conventional wisdom warns that unaccountable political and business agents can enrich a few at the expense of many. But logically extending this wisdom implies that associated principals – voters, consumers, shareholders – will favor themselves over the greater good when ‘rules of the game’ instead create too much accountability. Democratic Governance and Economic Performance rigorously develops this hypothesis, and finds statistical evidence and case study illustrations that democratic institutions at various governance levels (e.g., federal, state, corporation) have facilitated opportunistic gains for electoral, consumer, and shareholder principals. To be sure, this conclusion does not dismiss the potential for democratic governance to productively reduce agency costs.

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