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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
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Abstract:
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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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Find this file in the \Papers\705\ folder of this CD-ROM.
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