Exploring the concept of entrepreneurial rents (firm-specific superior financial performance) and proposing a rent creation-dissipation cycle are the focus of this work. The cycle proposed decomposes the Schumpeterian rent into the categories of Austrian rents and Ricardian rents. Austrian rents...

The unintended consequences of prohibition on domestic markets are well documented (Miron and Zwiebel, 1995). The enforcement of these prohibitions denies the extralegal enterprise (XLE) access to property rights and contract enforcement from the state. Consequently, XLEs must provide their own...