We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
RENT-SEEKING AND CAPITAL ACCUMULATION.
- Authors
BARELLI, PAULO; PESSÔA, SAMUEL DE ABREU
- Abstract
A general model incorporating rent-seeking activities in the standard neoclassical model of capital accumulation is presented. The welfare of the representative agent is negatively affected by the efficiency of rent-seeking activities. Although intuitive, this result is not obvious because long-run income can be positively affected by more efficient rent-seeking activities. The model is used to provide explanations for some recent experiences in developing countries, including the relative poor performance of economies that experience a move to a more decentralized system and the observed path of total factor productivity (TFP) in countries like Ireland and Venezuela. ( JEL D23, D74, O40, O41, O47)
- Subjects
IRELAND; VENEZUELA; RENT seeking; SAVINGS; NEOCLASSICAL school of economics; INDUSTRIAL productivity; DEVELOPING countries
- Publication
Economic Inquiry, 2012, Vol 50, Issue 2, p399
- ISSN
0095-2583
- Publication type
Article
- DOI
10.1111/j.1465-7295.2010.00318.x