Rent Seeking and Inclusiveness
This paper develops a model of political support in which governments gain support by creating wealth and also by creating rent, which gives rise to rent seeking, a major cause of inequality and poor economic performance. Rent seeking links the economic and political systems. A low rent-seeking option maximizes support only when “inclusiveness,” as defined and measured here, is high. The effects of inclusiveness on economic variables are examined, along with how the quest for political support causes inclusiveness to change. Depending on comparative political advantage, this quest can become the road to serfdom or the road to an inclusive polity, a kind of political invisible hand. The approach here avoids problems associated with the minimal "winning coalition" of selectorate theory.
|Date of creation:||26 Aug 2009|
|Date of revision:||19 Dec 2016|
|Publication status:||Published: Carleton Economic Papers|
|Contact details of provider:|| Postal: C870 Loeb Building, 1125 Colonel By Drive, Ottawa Ontario, K1S 5B6 Canada|
|Order Information:|| Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wintrobe, Ronald & Breton, Albert, 1986. "Organizational Structure and Productivity," American Economic Review, American Economic Association, vol. 76(3), pages 530-538, June.
- Peltzman, Sam, 1990.
"How Efficient Is the Voting Market?,"
Journal of Law and Economics,
University of Chicago Press, vol. 33(1), pages 27-63, April.
- Sam Peltzman, 1988. "How Efficient Is the Voting Market?," University of Chicago - George G. Stigler Center for Study of Economy and State 53, Chicago - Center for Study of Economy and State.
- Posner, Richard A, 1975. "The Social Costs of Monopoly and Regulation," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 807-827, August.
- Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 503-530.
- Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990. "The Allocation of Talent: Implicationsfor Growth," University of Chicago - George G. Stigler Center for Study of Economy and State 65, Chicago - Center for Study of Economy and State.
- Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990. "The Allocation of Talent: Implications for Growth," NBER Working Papers 3530, National Bureau of Economic Research, Inc.
- Murphy, Kevin M. & Shleifer, Andrei & Vishny, Robert W., 1991. "The Allocation of Talent: Implications for Growth," Scholarly Articles 27692664, Harvard University Department of Economics.
- Anderson, Gary M & Boettke, Peter J, 1997. "Soviet Venality: A Rent-Seeking Model of the Communist State," Public Choice, Springer, vol. 93(1-2), pages 37-53, October.
- David N. Laband & John P. Sophocleus, 1992. "An Estimate of Resource Expenditures on Transfer Activity in the United States," The Quarterly Journal of Economics, Oxford University Press, vol. 107(3), pages 959-983.
- César Calderón & Alberto E. Chong, 2006. "Rent Seeking and Democracy in Latin America: What Drives What?," IDB Publications (Working Papers) 6699, Inter-American Development Bank.
- César Calderón & Alberto Chong, 2006. "Rent Seeking and Democracy in Latin America: What Drives What?," Research Department Publications 4435, Inter-American Development Bank, Research Department.
- Gokcekus, Omer & Suzuki, Yui, 2011. "Business cycle and corruption," Economics Letters, Elsevier, vol. 111(2), pages 138-140, May.
- Ignacio Del Rosal, 2011. "The Empirical Measurement Of Rent‐Seeking Costs," Journal of Economic Surveys, Wiley Blackwell, vol. 25(2), pages 298-325, 04.
- Wintrobe,Ronald, 1998. "The Political Economy of Dictatorship," Cambridge Books, Cambridge University Press, number 9780521583299, September. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:car:carecp:09-05. 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: (Sabrina Robineau)
If references are entirely missing, you can add them using this form.