Econometric Society 57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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LOBBYING AND RENT-SEEKING FOR PUBLIC GOODS IN A FISCALLY CENTRALIZED SYSTEM


Category: Economic Theory
Public Goods
Sunday 25th August 2002, 09:30 - 11:00, Room: 5.7
Session Chair(s): Huseyin Yildirim, Duke University, UNITED STATES

Presenter(s): Cheikbossian, Guillaume

Co-Author(s): none

Keyword(s): , (Local) Public Goods, General Taxation, Rent-seeking, Spillovers

JEL(s): D72, H41, H73

Abstract:

This paper deals with public good provision and rent-seeking in an economy consisting of two regions with different preferences over public good consumption. The government either provides a national public good or two regional public goods with spillover effects. Since public expenditures are financed by general taxation, individuals in both regions try to influence policy-making in their preferred direction. Interesting results emerge from the analysis and in particular: rent seeking or influence activities for a national public good are increasing in the degree of heterogeneity across regions and there are also increasing in the degree of spillovers of local public goods.


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Paper Reference Number: 705

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57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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