Abstract:

Do leaders court or cut the entourage of sidelined elites during economic crises? We look at the case of Rafael Ramirez, Venezuela’s former Oil Czar, who was purged from Chavismo’s Cabinet in late 2014. We find that Ramirez-affiliated individuals and firms became discretely less likely to receive government appointments and contracts upon his purge. Effects on appointments are greatest for high-spending agencies, and firms affiliated with the military and with Nicolas Maduro gained access to government contracts. Downstream agents seem to share the fortunes of their patrons after coalition-shaping policies induced by worsening economic conditions.