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Measuring The Deadweight Costs Of Dup And Rent Seeking Activities

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  • Hal R. Varian

Abstract

I examine a simple model of rent seeking behavior in order to determine the correct way to measure welfare loss due to rent seeking. I conduct this analysis using a general equilibrium version of the standard partial equilibrium consumers' surplus cost-benefit setup. I conclude that the ordinary tools of cost-benefit analysis, such as consumers' and producers' surplus, are up to the task of measuring the deadweight loss due to rent seeking, as long as they are applied in the proper general equilibrium context. Copyright 1989 Blackwell Publishers Ltd..

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0343.1989.tb00006.x
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Bibliographic Info

Article provided by Wiley Blackwell in its journal Economics & Politics.

Volume (Year): 1 (1989)
Issue (Month): 1 (03)
Pages: 81-95

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Handle: RePEc:bla:ecopol:v:1:y:1989:i:1:p:81-95

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0954-1985

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Cited by:
  1. J.A. den Hertog, 2010. "Review of economic theories of regulation," Working Papers 10-18, Utrecht School of Economics.
  2. Sinn, H.W., 1990. "A Simple Model Of Useless Speculation," Papers 60, Princeton, Woodrow Wilson School - Discussion Paper.
  3. Mushtaq H. Khan, 1996. "The efficiency implications of corruption," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(5), pages 683-696.
  4. LAUSSEL, Didier & LE BRETON, Michel, . "Conflict and cooperation. The structure of equilibrium payoffs in common agency," CORE Discussion Papers RP -1519, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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