Kahana, Nava; Klunover, Doron - Institute for the Study of Labor (IZA) - 2014
income, there is interdependence between the social cost of rent seeking through rent dissipation and the excess burden of … taxation. Through the addition of substitution to rent seeking beyond leisure, rent seeking increases the excess burden of … burden of taxation under risk aversion. Our conclusion is that, when rent seekers can earn taxable income, rent seeking is …