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Rent-Seeking, Political Influence and Inequality: A Simple Analytical Example

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  • Pedersen, Karl R

Abstract

A simple model allowing an analysis of the interaction between economic policy decisions and rent-seeking by private agents competing for political influence is developed. Rent-seeking may be of the directly unproductive type, requiring resources that are withdrawn from productive activities, or it may manifest itself as income transfers (corruption) to political decisionmakers. In the political-economic equilibrium of the model, the extent of rent-seeking, economic policy decisions, income inequality, etc., are endogenously determined. Copyright 1995 by Kluwer Academic Publishers

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  • Pedersen, Karl R, 1995. "Rent-Seeking, Political Influence and Inequality: A Simple Analytical Example," Public Choice, Springer, vol. 82(3-4), pages 281-305, March.
    • Handle: RePEc:kap:pubcho:v:82:y:1995:i:3-4:p:281-305
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    Cited by:

    1. Sanyal, Amal & Gang, Ira N & Goswami, Omkar, 2000. "Corruption, Tax Evasion and the Laffer Curve," Public Choice, Springer, vol. 105(1-2), pages 61-78, October.
    2. Sebagh Thierry, 1995. "Recherche De Rente : Jeu de Guerre et Guerre D'enjeux - II," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 6(2-3), pages 301-320, June.

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