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Some Empirical Evidence on Rent-Seeking

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  • Beck, R L
  • Connolly, J M

Abstract

The authors test for the capture of net gains by winners in rent-seeking competitions using the most prominent announcements of government favors in the Canadian economy over a twelve-year period. Stockholders' returns are not significantly different from zero. One possible explanation is that government assists firms only when assistance creates political gains. Refusing to transfer economic rents to firms maximizes the resources available to serve political purposes. This kind of behavior by government officials would imply that government has market power, which is consistent with several well-known theories of government. Copyright 1996 by Kluwer Academic Publishers

Suggested Citation

  • Beck, R L & Connolly, J M, 1996. "Some Empirical Evidence on Rent-Seeking," Public Choice, Springer, vol. 87(1-2), pages 19-33, April.
    • Handle: RePEc:kap:pubcho:v:87:y:1996:i:1-2:p:19-33
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    Cited by:

    1. César Calderón & Alberto Chong, 2006. "Rent Seeking and Democracy in Latin America: What Drives What?," Research Department Publications 4435, Inter-American Development Bank, Research Department.
    2. Amihai Glazer, 2008. "Bargaining with Rent Seekers," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(5), pages 859-871, October.
    3. Oscar Alfranca, 2001. "Scientific policy and free riders," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(1), pages 147-158, February.
    4. César Calderón & Alberto Chong, 2006. "Búsqueda de rentas y democracia en América Latina: ¿Qué impulsa a qué?," Research Department Publications 4436, Inter-American Development Bank, Research Department.

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