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Rents from In-Kind Subsidy: "Charity" in the Public Sector


  • Jones, Philip R


Public choice analysis usually focuses attention on the behavior of self-interested individuals but this paper considers rent seeking when some taxpayers are motivated by altruism. Redistribution policies initiated by self-interested rent seekers require taxpayer approval. Even if taxpayers are fully informed, their resistance to inefficient schemes is reduced when public-sector schemes are the only means available to pursue altruistic goals. Altruism serves to broaden the scope within which rent seekers may operate. A discussion of international 'tied' aid illustrates the impact which rent seeking can exert on public-sector 'charity.' Copyright 1996 by Kluwer Academic Publishers

Suggested Citation

  • Jones, Philip R, 1996. "Rents from In-Kind Subsidy: "Charity" in the Public Sector," Public Choice, Springer, vol. 86(3-4), pages 359-378, March.
  • Handle: RePEc:kap:pubcho:v:86:y:1996:i:3-4:p:359-78

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    References listed on IDEAS

    1. Peter T. Leeson, 2007. "Trading with Bandits," Journal of Law and Economics, University of Chicago Press, vol. 50, pages 303-321.
    2. Peter Leeson & Christopher Coyne & Peter Boettke, 2006. "Converting social conflict: Focal points and the evolution of cooperation," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 19(2), pages 137-147, June.
    3. Peter T. Leeson, 2003. "Contracts Without Government," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 18(Spring 20), pages 35-54.
    4. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-548, June.
    5. Tullock, Gordon, 1999. "Non-prisoner's dilemma," Journal of Economic Behavior & Organization, Elsevier, vol. 39(4), pages 455-458, July.
    6. Leeson, Peter T., 2005. "Self-enforcing arrangements in African political economy," Journal of Economic Behavior & Organization, Elsevier, vol. 57(2), pages 241-244, June.
    7. Peter T. Leeson, 2008. "Social Distance and Self-Enforcing Exchange," The Journal of Legal Studies, University of Chicago Press, vol. 37(1), pages 161-188, January.
    8. Bernstein, Lisa, 1992. "Opting Out of the Legal System: Extralegal Contractual Relations in the Diamond Industry," The Journal of Legal Studies, University of Chicago Press, vol. 21(1), pages 115-157, January.
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    Cited by:

    1. Abbott, Andrew & Jones, Philip, 2012. "Government spending: Is development assistance harmonised with other budgets?," Journal of Policy Modeling, Elsevier, vol. 34(6), pages 921-931.

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