Advanced Search
MyIDEAS: Login to save this paper or follow this series

Endogenuous Cycles and rent seeking


Author Info

  • Vadim Khramov

    (Department of Economics Higher School of Eeconomics, Centre for Advanced Studies, Moscow, Russia)

Registered author(s):


    This paper is an attempt to reconsider one of the fundamental results of endogenous cycle theory, which was reached in the paper by Farmer and Guo (1994), by introducing more realistic assumptions about profit allocation in the economy. The hypothesis that profit enters the household’s budget through a separate channel is replaced by the hypothesis that economic profit turns into factor payments as a result of rent seeking. We believe that when economic profit occurs in the economy, a sector of agents which spend resources on capturing it appears, and this is the process referred to as rent seeking mechanism in our model. This assumption changes the agents’ inter-temporal optimization problem, such that conditions for endogenous cycles to occur change depending on the persistency of return to rent seeking. In this paper it is shown that even under large returns to scale in the production sector and a rather low depreciation rate of efforts in the rent seeking sector endogenous cycles do not occur.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    Download Restriction: no

    Bibliographic Info

    Paper provided by Laboratory for Macroeconomic Analysis in its series Working Papers with number w0109.

    as in new window
    Length: 26 pages
    Date of creation: Nov 2007
    Date of revision:
    Handle: RePEc:cas:wpaper:w0109

    Contact details of provider:
    Postal: Pokrovsky blvd, 11, Moscow
    Phone: +7(495)7713232
    Fax: +7(495)6287931
    Web page:
    More information through EDIRC

    Related research

    Keywords: indeterminacy; sunspots; rent seeking; endogenous cycles;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:


    No references listed on IDEAS
    You can help add them by filling out this form.



    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:cas:wpaper:w0109. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vadim Khramov).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.