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Collusion Among Interest Groups : Foreign Aid and Rent-Dissipation

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  • Svensson, J

Abstract

This paper develops a game-theoretic model of public policy in a developing country in order to explain a number of empirical regularities. It is shown that under certain circumstances, and increase in government revenue will be completly crowded out by incresed rent dissipation, leaving the provision of public goods unaltered.

Suggested Citation

  • Svensson, J, 1996. "Collusion Among Interest Groups : Foreign Aid and Rent-Dissipation," Papers 610, Stockholm - International Economic Studies.
    • Handle: RePEc:fth:stocin:610
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    Cited by:

    1. repec:kap:iaecre:v:12:y:2006:i:2:p:241-250 is not listed on IDEAS
    2. Lane, Philip R., 2003. "The cyclical behaviour of fiscal policy: evidence from the OECD," Journal of Public Economics, Elsevier, vol. 87(12), pages 2661-2675, December.
    3. Persson, Torsten & Tabellini, Guido, 1999. "Political economics and macroeconomic policy," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 22, pages 1397-1482, Elsevier.
    4. Nora Aboushady & Georges Harb & Chahir Zaki, 2025. "Aid for Trade, Political Ties, and Global Value Chains: A Regime-Dependent Effect?," Working Papers 1806, Economic Research Forum, revised 20 Dec 2025.

    More about this item

    Keywords

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    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • F35 - International Economics - - International Finance - - - Foreign Aid

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