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Rent-Seeking, Resource Booms and the Size of the Entrepreneurial Class : A Theoretical Analysis

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Author Info

  • Baland, J-M
  • Francois, P

Abstract

This paper develops a model of rent-seeking in which the opportunity cost of rent-seeking is foregone entrepreneurship. It provides conditions under which resource booms tend to lead to an increase in rent-seeking activity and those in which they induce entrepreneurship. It is shown that the effects of a resource boom depend critically on the number of rent-seeker/entrepreneurs in an economy.

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Bibliographic Info

Paper provided by Notre-Dame de la Paix, Sciences Economiques et Sociales in its series Papers with number 191.

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Length: 18 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:nodapa:191

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Postal: FACULTE UNIVERSITAIRE NOTRE-DAME DE LA PAIX, FACULTE DES SCIENCES ECONOMIQUES ET SOCIALES, RUE DE BRUXELLES NAMUR FRANCE.
Phone: ++32/(0)81/72.48.53
Fax: ++32/(0)81/72.48.40
Web page: http://www.fundp.ac.be/facultes/eco/
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Related research

Keywords: ECONOMIC MODELS ; ENTREPRENEURS;

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Cited by:
  1. Huw Lloyd-Ellis & Nicolas Marceau, 1998. "Getting Over the Hump: A Theory of Crime, Credit and Accumulation," Cahiers de recherche CREFE / CREFE Working Papers 65, CREFE, Université du Québec à Montréal.
  2. Marceau, Nicolas & Mongrain, Steeve, 2011. "Competition in law enforcement and capital allocation," Journal of Urban Economics, Elsevier, vol. 69(1), pages 136-147, January.

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