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Pre-assigned rents and bureaucratic friction

Author

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  • Nava Kahana
  • Shmuel Nitzan

Abstract

In this paper we study the endogenous determination of bureaucratic friction in a bureaucratic contest with ( ) and without (n=1) rent contestability. When n= 1 bureaucratic impediments induce the individual to undertake rent-securing activities at the same level as in the two-player rent-seeking contest. However, under rent contestability the bureaucracy no longer serves as a means of extracting resources from the public. The paper concludes with the study of the effect of ‘net costs’ on bureaucratic friction. It turns out that under cotestability the only reason for creating bureaucratic friction is the ‘negative costs’ it incurs while when n=1 the effect of the bureaucrat's net costs of generating bureaucratic friction on the optimal degree of such friction is ambiguous. Copyright Springer-Verlag Berlin Heidelberg 2002

Suggested Citation

  • Nava Kahana & Shmuel Nitzan, 2002. "Pre-assigned rents and bureaucratic friction," Economics of Governance, Springer, vol. 3(3), pages 241-248, November.
    • Handle: RePEc:spr:ecogov:v:3:y:2002:i:3:p:241-248
    DOI: 10.1007/s101010200046
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    Citations

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    Cited by:

    1. Epstein, Gil S. & Mealem, Yosef & Nitzan, Shmuel, 2011. "Political culture and discrimination in contests," Journal of Public Economics, Elsevier, vol. 95(1), pages 88-93.
    2. Pelosse, Yohan, 2009. "Mediated Contests and Strategic Foundations for Contest Success Functions," MPRA Paper 18664, University Library of Munich, Germany.
    3. Koziashvili, Arkadi & Nitzan, Shmuel & Tobol, Yossef, 2010. "Bureaucracy Norms and Market Size," Economics Series 259, Institute for Advanced Studies.
    4. MacKenzie, Ian A. & Ohndorf, Markus, 2012. "Cap-and-trade, taxes, and distributional conflict," Journal of Environmental Economics and Management, Elsevier, vol. 63(1), pages 51-65.

    More about this item

    Keywords

    Key words: endogenous bureaucratic impediments; rent-securing contest; rent-seeking contest; rent-contestability; JEL Classification: D72;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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