Documentos de trabajo
A model of capital accumulation and rent-seeking
Fecha
2002-06-01Registro en:
0104-8910
Autor
Barelli, Paulo
Pessôa, Samuel de Abreu
Institución
Resumen
A simple model incorporating rent-seeking into the standard neoclassical model of capital accumulation is presented. It embodies the idea that the performance of an economy depends on the efficiency of its institutions. It is shown that welfare is positively affected by the institutional efficiency, although output is not necessarily so. It is also shown that an economy with a monopolistic rent-seeker performs better than one with a competitive rent-seeking industry.