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Political Entrepreneurship and the Democratic Allocation of Economic Resources

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  • Holcombe, Randall G

Abstract

Political entrepreneurship occurs when an individual acts on a political profit opportunity. These profit opportunities can be divided into two categories: productive, and predatory. Productive opportunities enable entrepreneurs to profit from enhancing the efficiency of government, while predatory opportunities enable entrepreneurs to profit from forcibly transferring resources from some to others. This analysis shows that political institutions tend to favor predatory over productive political entrepreneurship, and shows that what is sometimes referred to as political exchange does not have the same efficiency characteristics as voluntary exchange in private markets. Copyright 2002 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Review of Austrian Economics.

Volume (Year): 15 (2002)
Issue (Month): 2-3 (June)
Pages: 143-59

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Handle: RePEc:kap:revaec:v:15:y:2002:i:2-3:p:143-59

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Web page: http://www.springerlink.com/link.asp?id=100335

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Cited by:
  1. Emily Chamlee-Wright & Virgil Storr, 2011. "Social capital, lobbying and community-based interest groups," Public Choice, Springer, vol. 149(1), pages 167-185, October.
  2. Coyne, Christopher J., 2011. "Constitutions and crisis," Journal of Economic Behavior & Organization, Elsevier, vol. 80(2), pages 351-357.
  3. Anthony Evans, 2014. "A subjectivist’s solution to the limits of public choice," The Review of Austrian Economics, Springer, vol. 27(1), pages 23-44, March.
  4. Klein, Peter G. & Mahoney, Joseph T. & McGahan, Anita M. & Pitelis, Christos N., 2009. "Toward a Theory of Public Entrepreneurship," Working Papers 09-0106, University of Illinois at Urbana-Champaign, College of Business.
  5. Douhan, Robin & Henrekson, Magnus, 2007. "The Political Economy of Entrepreneurship: An Introduction," Working Paper Series 688, Research Institute of Industrial Economics.
  6. Facchini, Francois, 2014. "The determinants of public spending: a survey in a methodological perspective," MPRA Paper 53006, University Library of Munich, Germany.
  7. Hederer, Christian, 2007. "Political Entrepreneurship and Institutional Change: an Evolutionary Approach," MPRA Paper 8249, University Library of Munich, Germany.
  8. Douhan, Robin & Henrekson, Magnus, 2007. "The Political Economy of Entrepreneurship," Working Paper Series 716, Research Institute of Industrial Economics.
  9. Douhan, Robin & Henrekson, Magnus, 2008. "Entrepreneurship and Second-best Institutions: Going Beyond Baumol’s Typology," Working Paper Series 766, Research Institute of Industrial Economics, revised 27 Aug 2009.
  10. Diana Thomas & Michael Thomas, 2014. "Entrepreneurship: Catallactic and constitutional perspectives," The Review of Austrian Economics, Springer, vol. 27(1), pages 11-22, March.
  11. Klein, Peter G. & Bullock, J. Bruce, 2006. "Can Entrepreneurship Be Taught?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(02), August.
  12. Adam Martin & Diana Thomas, 2013. "Two-tiered political entrepreneurship and the congressional committee system," Public Choice, Springer, vol. 154(1), pages 21-37, January.
  13. Douhan, Robin & Henrekson, Magnus, 2008. "Productive and Destructive Entrepreneurship in a Political Economy Framework," Working Paper Series 761, Research Institute of Industrial Economics.

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