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The Shadow Cost of State Violence: Evidence from Bureaucratic Purges in China

Sydney, Australia 24 August 2025 – 26 August 2025

Wenbing Wu (University of Melbourne); Ning He (New York University)

E8 Bureaucracies
Chair: Bernardo Mueller
Room Colombo LG05 - Theatre C
Economics / Institutions and organizations in political economy

Abstract

State violence inflicts obvious direct costs on its victims, but many of its significant consequences may be indirect. Building on the literature on agency problems in authoritarian regimes, we argue that coercion against bureaucrats motivates them to pursue over-zealous goals at the expense of wider social costs. We test this argument by studying how bureaucratic purges in China under Mao impacted the behavior of local bureaucrats during the Great Leap Forward, a campaign that caused over 30 million deaths from mass starvation. Exploiting variations in purge intensity across about 1,400 counties, we find the purge intimidated local bureaucrats into inflating agricultural production and extracting excessive amounts of grain from farmers, which resulted in significantly higher famine mortality. The results highlight the perils of “accountability by violence” in authoritarian regimes.

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