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This paper assesses the determinants of state fragility in sub-Saharan Africa using hitherto unexplored variables in … being a function of rent seeking and/or lobbying by de facto power holders is tested. The resulting interesting finding is … that, political interference, rent seeking and lobbying increase the probability of state fragility by mitigating the …
Persistent link: https://www.econbiz.de/10011261165
This paper models a dynamic scholar’s allocation of time between academia and professional activities outside academia, given the academic labor market and social interactions. The model shows how particularly in less developed countries business and political networks may have large negative...
Persistent link: https://www.econbiz.de/10011258976
In this paper we examine the factors that determine the adoption of state economic development incentives in the ethanol industry. We compile data on the implementation dates for subsidies/tax credits for all states for years 1984-2007, a period that covers the complete emergence of the biofuel...
Persistent link: https://www.econbiz.de/10009328123
Abstract The public water management in irrigated perimeter is marked by some failures. We can mention the theft of water, corruption and rent-seeking. These failures result in wastage of this scarce resource. We propose to study the public management of irrigated perimeter using the theory of...
Persistent link: https://www.econbiz.de/10009353529
One of the main obstacles for successful economic development is the formation of institutional traps, inefficient yet stable norms of behaviour. Domination of barter exchange, arrears, corruption and black market activities are examples of institutional traps that have hampered reforms in...
Persistent link: https://www.econbiz.de/10008596422
We propose a method based on the distance function to empirically estimate the social cost arising from rent seeking behaviour in declining industries. Due to import competition, the factors of a particular industry undergo losses in real income, and have incentives to seek protection. In the...
Persistent link: https://www.econbiz.de/10005789930
Two myths have harmed many economies throughout the world. One is the theory of absolute advantage of central planning over the market mechanism, and the other is the belief that efficient markets develop spontaneously and quickly enough if appropriate economic legislation is established....
Persistent link: https://www.econbiz.de/10008561156
The purpose of economic reform is to reduce distortions and enhance efficiency. However, when reforms are partial and incremental, individuals and local governments are often able to capture the rent inherent in the gradual transition process. Young (2000) warned that such rent-seeking behavior...
Persistent link: https://www.econbiz.de/10005836987
It is suggested a Romer-Barro - type model of endogenous economic growth where producers contest for distribution of a fixed share of the government’s tax revenue. The proportional contest mechanism is assumed. We studied conditions under which consumers gain or lose due to existence of the...
Persistent link: https://www.econbiz.de/10008543509
Any legislative framework is likely to generate different institutions or norms of behavior which the legislator occasionally could have never foreseen. I suggested a general pattern, on which inefficient, if stable, norms or institutions called institutional traps would form.
Persistent link: https://www.econbiz.de/10008552800