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On the Measurement of Rent Seeking and Its Social Opportunity Cost

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  • Sobel, Russell S
  • Garrett, Thomas A

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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Bibliographic 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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Web page: http://www.springerlink.com/link.asp?id=100332

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Cited by:
  1. repec:hal:cesptp:halshs-00654363 is not listed on IDEAS
  2. Joshua C. Hall & Kaitlyn R. Harger, 2014. "Teaching Students to "Do" Public Choice in an Undergraduate Public Sector Course," Working Papers 14-16, Department of Economics, West Virginia University.
  3. Gil Epstein & Shmuel Nitzan & Mordechai Schwarz, 2008. "Efforts in two-sided contests," Public Choice, Springer, vol. 136(3), pages 283-291, September.
  4. Nauro Campos & Francesco Giovannoni, 2007. "Lobbying, corruption and political influence," Public Choice, Springer, vol. 131(1), pages 1-21, April.
  5. François Facchini & Mickaël Melki, 2011. "Optimal Government Size and Economic Growth in France (1871-2008): An explanation by the State and Market Failures," Documents de travail du Centre d'Economie de la Sorbonne 11077, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  6. Hiroyuki Sano, 2014. "Reciprocal rent-seeking contests," Social Choice and Welfare, Springer, vol. 42(3), pages 575-596, March.
  7. Kahana, Nava & Klunover, Doron, 2014. "Rent Seeking and the Excess Burden of Taxation," IZA Discussion Papers 8160, Institute for the Study of Labor (IZA).
  8. 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.
  9. Sobel, Russell S., 2008. "Testing Baumol: Institutional quality and the productivity of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 23(6), pages 641-655, November.
  10. Antoine Gentier & Giuseppina Gianfreda & Nathalie Janson, 2006. "The Question of the Rent Dissipation in the Notes Issuance Activity: The Case of the Italian Banking System before the Creation of the Bank of Italy," CAE Working Papers 45, Aix-Marseille Université, CERGAM.
  11. Antoine Gentier & Giuseppina Gianfreda & Nathalie Janson, 2011. "Rent Dissipation or Government Predation? The Notes Issuance Activity in Italy 1865-1882," CAE Working Papers 88, Aix-Marseille Université, CERGAM.
  12. repec:hal:journl:halshs-00654363 is not listed on IDEAS

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