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On the Measurement of Rent Seeking and Its Social Opportunity Cost

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Author Info
 Sobel, Russell S
Garrett, Thomas A

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Abstract

Utilizing 4-digit industry data by county, we compare the allocation of resources across industries in state capital areas with noncapital areas. We are able to identify which industries are expanded and contracted relative to noncapital areas. Our results provide the first direct evidence and measurement of the foregone productive activity resulting from resources being reallocated toward rent seeking and interest group activity. Our data also allow us to measure total rent seeking, and also to isolate the extent of indirect and in-kind rent seeking, which can account for part of the Tullock paradox. Copyright 2002 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 112 (2002)
Issue (Month): 1-2 (July)
Pages: 115-36
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Handle: RePEc:kap:pubcho:v:112:y:2002:i:1-2:p:115-36

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  1. Gil Epstein & Shmuel Nitzan & Mordechai Schwarz, 2008. "Efforts in two-sided contests," Public Choice, Springer, vol. 136(3), pages 283-291, September. [Downloadable!] (restricted)
  2. Nauro F. Campos & Francesco Giovannoni, 2008. "Lobbying, Corruption and Other Banes," CEDI Discussion Paper Series 08-16, Centre for Economic Development and Institutions(CEDI), Brunel University. [Downloadable!]
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  3. Nauro Campos & Francesco Giovannoni, 2007. "Lobbying, corruption and political influence," Public Choice, Springer, vol. 131(1), pages 1-21, April. [Downloadable!] (restricted)
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  4. Richard Cornes & Roger Hartley, 2003. "Loss Aversion and the Tullock Paradox," Keele Economics Research Papers KERP 2003/06, Centre for Economic Research, Keele University. [Downloadable!]
  5. François Facchini, 2007. "Inequalities and growth: Are there good and bad inequalities?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00270483_v1, HAL. [Downloadable!]
  6. Martin Koning & François Facchini, 2008. "Quelle place pour l'entrepreneur dans les théories de la croissance régionale ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00319161_v1, HAL. [Downloadable!]
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