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

Author

Listed:
  • 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.

Suggested Citation

  • Baland, J-M & Francois, P, 1997. "Rent-Seeking, Resource Booms and the Size of the Entrepreneurial Class : A Theoretical Analysis," Papers 191, Notre-Dame de la Paix, Sciences Economiques et Sociales.
  • Handle: RePEc:fth:nodapa:191
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    Cited by:

    1. Marceau, Nicolas & Mongrain, Steeve, 2011. "Competition in law enforcement and capital allocation," Journal of Urban Economics, Elsevier, vol. 69(1), pages 136-147, January.
    2. 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.

    More about this item

    Keywords

    ECONOMIC MODELS ; ENTREPRENEURS;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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