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Pre-assigned rents and bureaucratic friction

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Author Info

  • Nava Kahana
  • Shmuel Nitzan

Abstract

In this paper we study the endogenous determination of bureaucratic friction in a bureaucratic contest with ( ) and without (n=1) rent contestability. When n= 1 bureaucratic impediments induce the individual to undertake rent-securing activities at the same level as in the two-player rent-seeking contest. However, under rent contestability the bureaucracy no longer serves as a means of extracting resources from the public. The paper concludes with the study of the effect of ‘net costs’ on bureaucratic friction. It turns out that under cotestability the only reason for creating bureaucratic friction is the ‘negative costs’ it incurs while when n=1 the effect of the bureaucrat's net costs of generating bureaucratic friction on the optimal degree of such friction is ambiguous. Copyright Springer-Verlag Berlin Heidelberg 2002

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File URL: http://hdl.handle.net/10.1007/s101010200046
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Bibliographic Info

Article provided by Springer in its journal Economics of Governance.

Volume (Year): 3 (2002)
Issue (Month): 3 (November)
Pages: 241-248

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Handle: RePEc:spr:ecogov:v:3:y:2002:i:3:p:241-248

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Related research

Keywords: Key words: endogenous bureaucratic impediments; rent-securing contest; rent-seeking contest; rent-contestability; JEL Classification: D72;

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Cited by:
  1. Gil S. Epstein & Yosef Mealem & Shmuel Nitzan, 2010. "Political Culture and Discrimination in Contests," Working Papers 2010-18, Department of Economics, Bar-Ilan University.
  2. Pelosse, Yohan, 2009. "Mediated Contests and Strategic Foundations for Contest Success Functions," MPRA Paper 18664, University Library of Munich, Germany.

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