Rent-Seeking


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Rent-Seeking

The practice of an individual, company, or government attempting to make a profit without making a product, producing wealth, or otherwise contributing to society. For example, a company may seek subsidies from the government, which would count as income for that company. Likewise, a government may seek rent by seizing control of natural resources and charging citizens for use. Some rent seeking is legal, while others, such as some forms of blackmail, are not. Rent-seeking behavior is most common when the rent seeker is also a monopoly or has sufficient economic or political power to act as one. The concept was originated by Adam Smith.
References in periodicals archive ?
In fact, the moratorium is just such an opportunity that will increase rent-seeking and expose the KFS to myriad litigation.
Assessing how this shift from bureaucratic to local control affected rent-seeking in the form of water theft along a channel, the study notes that in such quota-based systems, users have a strong temptation to bribe local officials to look the other way as they use various means to illicitly enhance their water entitlement.
As an alternative to the current positions on the right and left, Lindsey and Teles offer what they call a "liberaltarian" approach to public policy that focuses on curbing rent-seeking, limiting government in some ways and strengthening it in others.
The government needs to protect our industry and at the same time protect the consumers against rent-seeking.
Past experience has taught us that political turf battles and creating rent-seeking opportunities for private-sector allies will take precedence over solving Karachi's problems.
Let's discuss rent-seeking, as it relates to local marijuana dispensaries.
The project, the sources said, will create an overall environment of transparency, accountability and a sense of belonging for the landowners, the sources said and added that the project will also bring down rent-seeking and mal-practice.
He coedited with James Buchanan and Gordon Tullock the first scholarly volume in that area of research, Toward a Theory of the Rent-Seeking Society (Buchanan, Tollison, and Tullock 1980).
The experience from overseas and here shows that protection only leads to inertia, lack of regulation and rent-seeking.
In contrast, under the rent-seeking scenario, progressive taxes on the top are actually efficient because they reduce wasteful activities from top earners aimed at increasing their own pay at the expense of others.
Somalia's fragility has been driven by several factors that include protracted conflict, sporadic violence and insurgency, political uncertainty due to inter-clan tensions and rent-seeking, inadequate human and institutional capacity, and nascent public financial governance.
the "Tullock paradox"), although some of this differential may be explained by less visible and hard to measure in-kind rent-seeking activities.