Wealth constraints, lobbying and the efficiency of public allocation
AbstractIn Esteban and Ray (1999) we formalize a model in which individuals lobby before the government in order to benefit from some productivity enhancing government action (infrastructure, direct subsidies, permissions, in short). The government honestly tries to allocate these permissions to the agents that will make the best use of them, as revealed by the intensity of their lobbying. If the marginal cost of resources varies with wealth, the amount of information transmitted through lobbying will depend on the degree of inequality. In this paper, we summarize the main approach and examine the special case of equal wealth.
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Bibliographic InfoArticle provided by Elsevier in its journal European Economic Review.
Volume (Year): 44 (2000)
Issue (Month): 4-6 (May)
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Web page: http://www.elsevier.com/locate/eer
Other versions of this item:
- Esteban, J. & Ray, D., 2000. "Wealth Constraints, Lobbying and the Efficiency of Public Allocation," Papers 42, El Instituto de Estudios Economicos de Galicia Pedro Barrie de la Maza.
- O20 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - General
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
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