Journal of Political Institutions and Political Economy > Vol 1 > Issue 4

Epidemics, Rent Extraction, and the Value of Holding Office

Francisco Garfias, University of California San Diego, USA, fgarfias@ucsd.edu Emily A. Sellars, Yale University, USA, emily.sellars@yale.edu
 
Suggested Citation
Francisco Garfias and Emily A. Sellars (2020), "Epidemics, Rent Extraction, and the Value of Holding Office", Journal of Political Institutions and Political Economy: Vol. 1: No. 4, pp 559-583. http://dx.doi.org/10.1561/113.00000022

Publication Date: 18 Nov 2020
© 2020 F. Garfias and E. A. Sellars
 
Subjects
Bureaucracy,  Comparative political economy,  Comparative politics,  Political economy,  Political history,  Political corruption
 
Keywords
Epidemicshistorical political economycorruptionagricultural marketsMexico
 

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In this article:
Historical Setting 
Empirical Analysis 
Discussion 
Conclusion 
References 

Abstract

Public officials who control access to scarce resources may profit by extracting extraordinary rents during the economic disruptions that follow epidemics. This can increase the value of holding office during these crises. Using data on the sales of public offices in colonial Mexico, we show that while the negative effects of epidemics limited the value of office in most areas, in districts with a public granary — an institution that regulated grain markets in times of food scarcity — aspiring officeholders were willing to pay more for positions following disease outbreaks. Historical evidence suggests that the differential increase in office prices in areas with a granary can be traced to officials' ability to manipulate food prices and supply for personal gain during crises. This highlights the important roles of economic monopoly and political corruption in determining the consequences of epidemics.

DOI:10.1561/113.00000022

Companion

Journal of Political Institutions and Political Economy, Volume 1, Issue 4 Special issue - The Political Economy of Pandemics, Part I
See the other articles that are part of this special issue.