We study the benefits of private entrepreneurs entering into politics in China. Using original hand-collected data on political participation of entrepreneurs that control listed firms, we document evidence of rent seeking through their political networks and several potential channels through which rent seeking is realized. It is shown that political participation results in increased stock pe...

This paper examines the determinants of wage pressure in large companies, including ownership characteristics and the impact of regional labour markets. By using a panel of 329 Polish largest firms during the period 19972001, we find evidence of rent sharing activities, however there is also asymmetry in quasi rent elasticity of wages. The wage setting mechanism seems to differ between new priv...

The low-income housing tax credit (LIHTC) is the largest project-based housing subsidy in the United States. Within the program, private developers receive a subsidy in exchange for constructing apartment units that rent for a predetermined affordable rate. Because the subsidy requires apartment buildings to charge a lower rental rate, the opportunity cost of developing subsidized housing in a ...

This article analyzes an asymmetric rent-seeking contest with free riding where valuation on the prize (rent) and effectiveness of rent-seeking effort may differ among agents and the victory of an agent may not exclude some agents other than the winner of the contest to consume the prize of the contest. After proving the unique existence of pure-strategy Nash equilibrium, this article examines ...

There can be three types of heterogeneity among players in a rent-seeking contest. First, the efectiveness of agent's efort on the winning probabilities may difer among players. Secondly, players may evaluate the rent or prize of the rent-seeking contest diferently. Thirdly, players may face diferent financial constraints. Without assuming that each player’s production function for loteries is ...

Wirelength estimation is one of the most important Rent’s rule applications. Traditionally, the Rent exponent is extracted using recursive bipartitioning. However, the obtained exponent may not be appropriate for the purpose of wirelength estimation. In this paper, we propose the concepts of partitioning-based Rent exponent and placement-based Rent exponent. The relationship between these two e...

Rent extraction by public sector workers may be limited by the ability of taxpayers to vote with their feet. But rent extraction may be higher in regions where high amenities mute the migration response. This paper develops a theoretical model that predicts such a link between public sector wage differentials and local amenities, and the predictions are tested by analyzing variation in these di...

Imperfect altruism between generations may lead to insufficient capital accumulation. We study the welfare consequences of taxing the rent on a fixed production factor, such as land, in combination with age-dependent redistributions as a remedy. Taxing rent enhances welfare by increasing capital investment. This holds for any tax rate and recycling of the tax revenues except for combinations of...

The paper deals with rent-seeking behaviour among agents competing for future shares of a common renewable natural resource. Rent-seeking might become profitable when the agents expect that the distribution of the natural resource in future periods will be dependent on the agents’ extraction of the resource in the past, even though high exploitation might reduce the stock that future individual...