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Rents from In-Kind Subsidy: "Charity" in the Public Sector

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  • Jones, Philip R

Abstract

Public choice analysis usually focuses attention on the behavior of self-interested individuals but this paper considers rent seeking when some taxpayers are motivated by altruism. Redistribution policies initiated by self-interested rent seekers require taxpayer approval. Even if taxpayers are fully informed, their resistance to inefficient schemes is reduced when public-sector schemes are the only means available to pursue altruistic goals. Altruism serves to broaden the scope within which rent seekers may operate. A discussion of international 'tied' aid illustrates the impact which rent seeking can exert on public-sector 'charity.' Copyright 1996 by Kluwer Academic Publishers

Suggested Citation

  • Jones, Philip R, 1996. "Rents from In-Kind Subsidy: "Charity" in the Public Sector," Public Choice, Springer, vol. 86(3-4), pages 359-378, March.
    • Handle: RePEc:kap:pubcho:v:86:y:1996:i:3-4:p:359-78
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    Cited by:

    1. Philip Jones, 2007. "Colluding victims: A public choice analysis of international alliances," Public Choice, Springer, vol. 132(3), pages 319-332, September.
    2. Jesse M Cunha & Giacomo De Giorgi & Seema Jayachandran, 2019. "The Price Effects of Cash Versus In-Kind Transfers," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(1), pages 240-281.
    3. Abbott, Andrew & Jones, Philip, 2012. "Government spending: Is development assistance harmonised with other budgets?," Journal of Policy Modeling, Elsevier, vol. 34(6), pages 921-931.

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