Rent seeking is well known, but empirical evidence of its effects is relatively rare. This paper analyzes the how domestic and international rent seeking caused Brazil to provide coffee export tax rebates that transferred foreign exchange to coffee importers. Although Brazil was the world's...

Background: The coffee industry is one of the most important world supply chains, with an estimated consumption of two billion cups daily, making it the most consumed beverage worldwide. Coffee beans are primarily grown in tropical countries, with Brazil accounting for almost 50% of the...