Bureaucratic tenure and economic performance in centrally planned economies

Murrell and Olson (1991) set forth the hypothesis that in centrally planned economies economic interests over time become fragmented as bureaus become more autonomous and form into narrowly-based distributional coalitions. As a consequence, the national leader's encompassing interest in economic growth becomes compromised and growth begins to slow. This paper provides the first direct test of the hypothesis that growing bureaucratic autonomy results in declining economic growth in centrally planned economies.