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On Rent Seeking and Inclusiveness

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    Abstract

    Using an extension of a standard rent-seeking model, this paper shows that "inclusiveness", as defined and measured in the text, is the property of a political system that motivates government to deter destructive rent seeking. Highly-inclusive polities are likely to be democracies since dictatorships lack a key prerequisite for inclusiveness. However, democracies are not necessarily highly inclusive.

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    File URL: http://www1.carleton.ca/economics/ccms/wp-content/ccms-files/cep09-05.pdf
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    Bibliographic Info

    Paper provided by Carleton University, Department of Economics in its series Carleton Economic Papers with number 09-05.

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    Length: 32 pages
    Date of creation: 26 Aug 2009
    Date of revision: 18 Apr 2013
    Publication status: Published: Carleton Economic Papers
    Handle: RePEc:car:carecp:09-05

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    Keywords: Rent seeking; inclusiveness;

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    1. Anderson, Gary M & Boettke, Peter J, 1997. " Soviet Venality: A Rent-Seeking Model of the Communist State," Public Choice, Springer, vol. 93(1-2), pages 37-53, October.
    2. César Calderón & Alberto Chong, 2006. "Rent Seeking and Democracy in Latin America: What Drives What?," Research Department Publications 4435, Inter-American Development Bank, Research Department.
    3. Wintrobe,Ronald, 2000. "The Political Economy of Dictatorship," Cambridge Books, Cambridge University Press, number 9780521794497, Fall.
    4. Laband, David N & Sophocleus, John P, 1992. "An Estimate of Resource Expenditures on Transfer Activity in the United States," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 959-83, August.
    5. Posner, Richard A, 1975. "The Social Costs of Monopoly and Regulation," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 807-27, August.
    6. Gokcekus, Omer & Suzuki, Yui, 2011. "Business cycle and corruption," Economics Letters, Elsevier, vol. 111(2), pages 138-140, May.
    7. Peltzman, Sam, 1990. "How Efficient Is the Voting Market?," Journal of Law and Economics, University of Chicago Press, vol. 33(1), pages 27-63, April.
    8. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 503-30, May.
    9. Wintrobe, Ronald & Breton, Albert, 1986. "Organizational Structure and Productivity," American Economic Review, American Economic Association, vol. 76(3), pages 530-38, June.
    10. Ignacio Del Rosal, 2011. "The Empirical Measurement Of Rent‐Seeking Costs," Journal of Economic Surveys, Wiley Blackwell, vol. 25(2), pages 298-325, 04.
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