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Rent-Seeking and the Privatization of the Commons

Citation

Brooks, MA and Heijdra, B, Rent-Seeking and the Privatization of the Commons, European Journal of Political Economy, 6, (1) pp. 41-59. ISSN 0176-2680 (1990) [Refereed Article]

DOI: doi:10.1016/0176-2680(90)90035-H

Abstract

In this paper a small two sector model is developed and used to analyze the private versus common property debate in the presence of resource-using rent-seeking. We are able to demonstrate that, in contrast to the existing literature, there may be a gain associated with privatization even when rent-seekers spend all the scarcity rent on the lobbying activity. We also challenge the traditional result which states that privatization will necessarily lead to a reduction in the rate of renumeration to the mobile factor.

Item Details

Item Type:Refereed Article
Research Division:Economics
Research Group:Applied Economics
Research Field:Welfare Economics
Objective Division:Economic Framework
Objective Group:Microeconomics
Objective Field:Microeconomics not elsewhere classified
Author:Brooks, MA (Associate Professor Michael Brooks)
ID Code:39865
Year Published:1990
Deposited By:Economics and Finance
Deposited On:2006-07-06
Last Modified:2011-08-30
Downloads:0

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