This study demarcates cost-inefficiency in Chinese banks into X-inefficiency and rent-seeking-inefficiency. A protected banking market not only encourages weak management and X-inefficiency but also public ownership and state directed lending encourages moral hazard and bureaucratic rent seeking. This paper uses bootstrap non-parametric techniques to estimate measures of X-inefficiency and rent...

This paper analyzes the determinants of the welfare state. In a model that integrates majority voting and lobbying by interest groups, we show how the bargaining power of the unskilled and the skilled workers’ lobby affects the size of the welfare state: The more influential the union representing the unskilled, the greater the extent of redistribution. On the other hand, the presence of depend...

Using its control of regulated inputs, a government agency extracts rents from a manager who undertakes an investment. Such government rent-seeking activity leads to a typical hold-up problem. Government ownership serves as a second-best commitment mechanism, through which the government agency will restrain itself from the rent-seeking activity and may even offer the manager assistance in the ...

This paper contributes to the historical political economy literature, which considers the fiscal imperatives of the state to be amongst the driving forces behind the emergence of representative systems of government, by examining the impact on democracy of a government’s reliance on alternative sources of revenue. ‘Taxation’ and ‘natural resource rent extraction’ are considered as alternative ...

T hose who shape state and local fiscal policy have had a sustained interest in the role that taxation plays in the economic development of states, regions, cities, and special districts or zones. At least 75 studies of employment growth, investment growth, or firm location include an analysis of taxes. Interest in the topic is fueled further when firms complain about the business climate in ge...

The present paper deals with a surplus production model of Verhulst-Schaefer for Bangladesh shrimp fishery to develop a static as a well as dynamic framework to investigate the optimal utilization of the resource, sustainability properties of the stock and the resource rent earned from the resource. The basic objective of this paper is to provide the way through which long run sustainability ca...

Literature on tax compliance has experienced explosive growth in the past 20 years. Yet the vast majority of this work has focused on individuals and compliance with the personal income tax, rather than company compliance and compliance with other taxes. This paper explores the subject of sales tax audit selection and firm underreporting of statutory sales tax liabilities. The analysis relies o...