Rent-Seeking, Resource Booms and the Size of the Entrepreneurial Class : A Theoretical Analysis
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.
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|Date of creation:||1997|
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