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Rent Seeking And Democracy: Empirical Evidence For Uruguay

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  • CÉSAR CALDERÓN
  • ALBERTO CHONG

Abstract

We provide evidence for Granger causality between rent‐seeking behavior and democracy in Uruguay, where both rent‐seeking behavior and political shifts have varied widely in the past 80 yr but ethnolinguistic heterogeneity and inequality have remained low. This helps identify “pure” interactions and their link with rent‐seeking outcomes. The presence and duration of democracy appear to have been conducive to a decrease in rent seeking, although the reduction in rent seeking does not appear to have had a bearing on the quality of democratic regime. While the duration of democratic regime may impact rent‐seeking behavior, rent seeking also displays a Granger causality to democratic duration. (JEL O10, O1)

Suggested Citation

  • César Calderón & Alberto Chong, 2007. "Rent Seeking And Democracy: Empirical Evidence For Uruguay," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 592-601, July.
    • Handle: RePEc:bla:ecinqu:v:45:y:2007:i:3:p:592-601
    DOI: 10.1111/j.1465-7295.2007.00023.x
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    Cited by:

    1. Iqbal, Nasir & Daly, Vince, 2014. "Rent seeking opportunities and economic growth in transitional economies," Economic Modelling, Elsevier, vol. 37(C), pages 16-22.
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    3. repec:gig:joupla:v:3:y:2011:i:2:p:3-41 is not listed on IDEAS

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    More about this item

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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