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Location Choice and Urban Growth in a Rent-Seeking Society

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  • Bruce L. Benson
  • M. D. Faminow

Abstract

Gordon Tullock suggested that as rent-seeking becomes increasingly important, location choices and urban growth patterns will be affected. Resources should be diverted to cities where government units are most able to grant rents. The implications of this argument are expanded upon using principles of location theory and location-specific growth theory. An empirical test of an urban growth model provides support for Tullock's contentions. By considering rent seeking in the context of location and urban growth models, the implications of the rent-seeking paradigm are extended. Simultaneously, a more complete understanding of relative urban growth rates is gained.

Suggested Citation

  • Bruce L. Benson & M. D. Faminow, 1988. "Location Choice and Urban Growth in a Rent-Seeking Society," Public Finance Review, , vol. 16(2), pages 158-177, April.
    • Handle: RePEc:sae:pubfin:v:16:y:1988:i:2:p:158-177
    DOI: 10.1177/109114218801600202
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    References listed on IDEAS

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    4. Douglass C. North, 1955. "Location Theory and Regional Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 63(3), pages 243-243.
    5. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    6. Benson, Bruce L & Johnson, Ronald N, 1986. "The Lagged Impact of State and Local Taxes on Economic Activity and Political Behavior," Economic Inquiry, Western Economic Association International, vol. 24(3), pages 389-401, July.
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    8. Walter Isard, 1951. "Distance Inputs and the Space-Economy Part II: The Locational Equilibrium of the Firm," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 65(3), pages 373-399.
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    Cited by:

    1. Ronald L. Moomaw & Mohammed A. Alwosabi, 2004. "An empirical analysis of competing explanations of urban primacy evidence from Asia and the Americas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(1), pages 149-171, March.

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