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Reducing Rent Seeking by Providing Wide Public Service

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Author Info

  • Amihai Glazer

    ()
    (Department of Economics, University of California-Irvine)

  • Stef Proost

    ()
    (Center for Economic Studies, KULeuven)

Abstract

A winning coalition which sets policy cannot always ensure that members of the coalition will be the ones getting benefits. Different jurisdictions (including members of the winning coalition) may then engage in costly rent seeking. Maximizing the welfare of the winning coalition may therefore require providing services to jurisdictions which are not members of the winning coalition, thereby reducing rent seeking by members of the winning coalition. The paper shows how this mechanism can generate insuffcient supply of public services, and offers another explanation for the use of co-funding requirements by the central government.

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Bibliographic Info

Paper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 101106.

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Length: 21 pages
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:irv:wpaper:101106

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Keywords: Publicly provided goods; Rent seeking;

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  1. Glazer, Amihai & McMillan, Henry, 1992. " Amend the Old or Address the New: Broad-Based Legislation When Proposing Policies Is Costly," Public Choice, Springer, vol. 74(1), pages 43-58, July.
  2. McCubbins, Mathew D & Noll, Roger G & Weingast, Barry R, 1987. "Administrative Procedures as Instruments of Political Control," Journal of Law, Economics and Organization, Oxford University Press, vol. 3(2), pages 243-77, Fall.
  3. Cheikbossian, Guillaume, 2008. "Rent-seeking, spillovers and the benefits of decentralization," Journal of Urban Economics, Elsevier, vol. 63(1), pages 217-228, January.
  4. Clark, Derek J & Riis, Christian, 1998. "Competition over More Than One Prize," American Economic Review, American Economic Association, vol. 88(1), pages 276-89, March.
  5. Tollison, Robert D, 1982. "Rent Seeking: A Survey," Kyklos, Wiley Blackwell, vol. 35(4), pages 575-602.
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