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How To Consider Governance In Economic Policy Modeling?

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  • Gaitan, Beatriz
  • Pavel, Ferdinand

Abstract

We develop a framework where economic agents choose between becoming productive entrepreneurs or re-distributive rent seekers. Rent seekers use economic resources to extract rents and thus their existence generates an inefficient economic outcome. We study the welfare impact of rent seeking activities and show that their reduction is welfare improving.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2001 Annual meeting, August 5-8, Chicago, IL with number 20566.

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Date of creation: 2001
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Handle: RePEc:ags:aaea01:20566

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Keywords: Political Economy;

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  1. Baldwin, Richard, 1990. "Measurable Dynamic Gains from Trade," Working Paper Series 270, Research Institute of Industrial Economics.
  2. Angeletos, George-Marios & Kollintzas, Tryphon, 2000. "Rent Seeking/Corruption And Growth: A Simple Model," CEPR Discussion Papers 2464, C.E.P.R. Discussion Papers.
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