Coalition Trimming of Purged Elites

Do leaders court or cut the entourage of sidelined elites during economic crises? We examine the case of Rafael Ramirez, Venezuela's former Oil Czar, who was purged from the 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 share the fortunes of their patrons after coalition-shaping policies induced by worsening economic conditions.