ISSN:
0144-3585
Source:
Emerald Fulltext Archive Database 1994-2005
Topics:
Economics
Notes:
The purpose of the present study is to test the hypothesis alluded to by Tullock, within the context of defensive rent-seeking efforts developed by others (e.g. McChesney). Here, we test the idea that defensive rent seeking efforts (or rent-defending) to maintain the status quo augment offensive rent-seeking (all proxied by real campaign contributions to US House/Senate candidates, 1976-1992) during federal budgetary climates of deficit-cutting (budget-balancing). When a panel estimator is properly used, our econometric evidence confirms our hypothesis. Evidence from a Parks regression technique suggests that total rent-seeking is positively related to the amount of federal spending, as others have shown, but that rent-seeking efforts increase when federal budget deficits are reduced, threatening existing spending patterns and rents. Perhaps an unintended consequence of deficit-reduction efforts, holding government spending constant, is an increase in the size of the rent-seeking industry.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1108/01443589910252566
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