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Crony Capitalism

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  • Paul H. Rubin

Abstract

This Article discusses "crony capitalism," a form of rent-seeking, and its sources. Although the term crony capitalism is generally applied to non-Western economies, any economy is susceptible to three primary sources of cronyism: standard special interest legislation, "bootlegger and Baptist" coalitions, and pathological altruism. Identifying cronyism requires care, as what appears to be cronyism is often a second-best response to the inefficiency of an existing government intervention. Reducing cronyism is therefore difficult without limiting the overall size and scope of government.

Suggested Citation

  • Paul H. Rubin, 2015. "Crony Capitalism," Supreme Court Economic Review, University of Chicago Press, vol. 23(1), pages 105-120.
    • Handle: RePEc:ucp:scerev:doi:10.1086/686474
    DOI: 10.1086/686474
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